Can govt employee opt between Unified Pension Scheme and New Pension Scheme? Minister Answers

Unified Pension Scheme: The Centre on Saturday announced a new Unified Pension Scheme for government employees. Announcing the decision, Union Minister Ashwini Vaishnaw said that the new scheme has been formulated to ensure pension for government employees. The new scheme will be effective from April 1, 2025. 

Can govt employees opt between NPS and UPS? 

Announcing a major decision, the government has informed that an employee will be able to opt between National Pension Scheme (NPS) and Unified Pension Scheme.

"The Unified Pension Scheme has five pillars. The government employees wanted an assured amount, which was a logical requirement. Thus, 50 per cent assured pension is the first pillar of the UPS. This amount will be the average of basic pay of 12 months before superannuation. If someone has worked for 25 years, then that person will get this assured pension amount," said Union Minister Ashwini Vaishnaw, as he explained the new Unified Pension Scheme.

“Government employees have demanded some changes in the New Pension Schemes. For this, PM Modi constituted a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organisations and nearly all the states. There's a difference between how PM Modi works and the oppositions works. Unlike the opposition, PM Modi believes in holding extensive consultations. Following extensions consultations with everyone, including Reserve Bank of India and World Bank, the committee has recommended a Unified Pension Scheme. Today, the Union Cabinet has approved this Unified Pension,” the Union Minister informed.

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