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Unified Pension Scheme comes into effect from April 1
April 02, 2025
|The New Indian Express Sambalpur
THE central government employees have now more options to choose from on the pension front, as the Unified Pension Scheme (UPS) comes into effect from Tuesday (April 1).
The scheme was announced in August 2024 to reduce the pension liabilities on the exchequer.
As of March 1, 2025, there were 36.57 lakh central government employees and 33.91 lakh pensioners. The demand under the Old Pension Scheme (OPS) was ₹2.07 lakh crore in FY23. The government pays 50% of the average of last 10 months' pay as pension in the OPS.
NPS and UPS difference
The key difference lies in the pension guarantee and investment approach. While the NPS is market-linked with potentially higher returns but no guaranteed pension, the UPS offers a guaranteed minimum pension.
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