Centre approves assured 50% of salary as pension for govt staff

TRANSFORMS NPS TO UNIFIED PENSION SCHEME

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In a bonanza to about 23 lakh Central government employees, the Union Cabinet on Saturday approved an assured pension of 50 per cent of salary for those who joined the service after January 1, 2004, under the National Pension System (NPS).

Fulfilling long pending demands of government employees ahead of Assembly elections in Haryana and Jammu and Kashmir, the Cabinet meeting, chaired by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS), which assures guaranteed pension.

Employees opting for UPS would be eligible for an assured pension of 50 per cent of the average basic pay drawn over the last 12 months before the superannuation for a minimum qualifying service of 25 years.

This pay is to be proportionate for a lesser service period up to a minimum of 10 years of service, Information and Broadcasting minister Ashwini Vaishnaw said.

The new pension scheme also guarantees an assured minimum pension of Rs 10,000 per month on superannuation after a minimum of 10 years of service.