Context:
The Union Cabinet has recently approved the Unified Pension Scheme (UPS) for central government employees.
Unified Pension Scheme (UPS):
- Objective – To provide a comprehensive and assured pension system for employees by unifying various existing pension schemes.
- Designed after attempting to improve pension benefits under National Pension Scheme without reverting to the non-contributory Old Pension System (OPS).
Key Features of the Scheme:
- Assured Pension – Employees will receive a pension amounting to 50% of their average basic pay from the last 12 months before retirement, applicable for those who have served a minimum of 25 years.
- There is a proportionate reduction for those with 10 to 25 years of service.
- Family Pension – In the event of the employee’s demise, the family will receive 60% of the employee’s pension
- Minimum Pension Guarantee – Guarantees a minimum pension of ₹10,000 per month for those who have completed at least 10 years of service
- Inflation Indexation – Pensions will be indexed to inflation based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW)
- Lump-Sum Payment – At the time of superannuation, employees will receive a lump sum payment in addition to their gratuity.
- This payment will be 1/10th of the monthly emoluments (pay + DA) for every 6 months of completed service, without reducing the assured pension.
- Eligibility – Existing and future employees will have the option of joining the New Pension Scheme or UPS.
- The choice, once exercised, will be final.
- Provisions of the UPS would also apply to past retirees of the New Pension Scheme.
- Government Contribution – Government’s contribution has also been increased from 14 to 18.5%.
Previous Year Question
Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?
1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers
2. Only one member of a family can join the scheme.
3. Same amount of pension is guaranteed for the spouse for life after subscriber’s death.
Select the correct answer using the code given below.
[UPSC Civil services Exam – 2016 Prelims]
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (c)
Explanation:
Statement 2 is not correct. The scheme is open to all adults of a family.
