On 18-6-2025, the Ministry of Finance, Department of Financial Service introduced ‘Unified Pension Scheme (UPS)’ to extend the pension benefits and retirement gratuity and death gratuity benefits to the employees of Central Government under the National Pension System (NPS).
Key updates of the Unified Pension Scheme:
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As notified earlier by the Ministry, on 24-1-2025, the Central Government employees covered under the NPS will be granted a one-time option to opt for the UPS to enhance social security for such employees.
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This option is available to recruits who enter Central Government service with effect from 1-4-2025, allowing them to be included under the UPS framework at the time of joining.
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Employees exercising the UPS option will now be eligible for retirement gratuity and death gratuity according to the provisions of CCS (Payment of Gratuity under NPS) Rules, 2021.
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Following this initiative, the Department of Pension and Pensioners’ Welfare issued a clarification regarding these provisional changes through an Office Memorandum on 18-6-2025, further affirming the eligibility of the employees for gratuity benefits.
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This move brings UPS benefits closer to those of the Old Pension Scheme, addressing long-standing concerns over equity in retirement coverage.