News Brief
Unified Pension Scheme Likely To Be Notified By 15 October, Roll Out From 1 April Next Year
The Unified Pension Scheme got the cabinet nod in August and is likely to be notified by 15 October (Background photo by rupixen on Unsplash)
Over a month after announcing the Unified Pension Scheme (UPS), the Centre is working on expediting the roll-out of the pension scheme.
The Centre is reportedly working towards releasing the official notification for the UPS, which was announced on 24 August, by 15 October, to facilitate its launch in the next financial year, starting on 1 April 2025, Economic Times reported.
The UPS is currently a key priority on the government’s agenda.
Cabinet Secretary T V Somanathan has reportedly been conducting review meetings with various ministries and departments involved in the scheme over the past few weeks to accelerate the process.
Somanathan as Finance Secretary had chaired a committee last year to examine the existing National Pension Scheme and is already well-versed with the fine print involved in the shift.
The Department of Expenditure is leading the initiative, but the operationalisation of the scheme will require the involvement of multiple departments.
The first phase of the UPS rollout is the notification of the scheme, which was initially planned for September but is now expected by mid-October.
Following this, over 23 lakh central government employees will be asked to decide whether they wish to adopt the new UPS or remain with the National Pension Scheme.
Employees who retire on or before 31 March 2025, will be eligible for the new scheme.
Meanwhile, the Department of Administrative Reforms and Personnel Grievances (DARPG) is drafting a new service rulebook to support the implementation of the UPS.
The Pension Fund Regulatory and Development Authority (PFRDA) is working on the investment aspects of UPS, including determining the government's contribution to the pension corpus and exploring ways to increase the overall fund size.
The Department of Pension and Pensioners' Welfare is a key stakeholder as well and part of the high-level meetings.
The National Security Depository Ltd (NSDL), India's central securities depository that manages the electronic transactions of securities, is examining the operationalisation requirements for UPS.
Under the UPS, government employees will receive 50 per cent of their last drawn salary as a lifelong monthly pension, with regular adjustments for inflation through dearness allowance.
A minimum pension of Rs 10,000 per month is assured for those who complete at least 10 years of service, along with provisions for a 60 per cent family pension in the event of an employee’s death.
While the scheme will initially cover 23 lakh central government employees, estimates suggest the number of beneficiaries could grow to around 90 lakh if state governments decide to participate.
