The government has officially notified the Unified Pension Scheme as an option under the National Pension System, according to a gazette notification.
The scheme applies to all central government employees who are covered under the National Pension System.
An assured payout under the UPS will be available to employees who meet three specific criteria. The first criterion is if an employee superannuates after completing a qualifying service of 10 years, starting from the date of superannuation. The second criterion is for employees opting for voluntary retirement after completing a minimum qualifying service period of 25 years.
However, the assured payout is not available in cases where an employee is removed or dismissed from service or resigns. Additionally, government employees who retire prematurely due to a lack of integrity or effectiveness will still be eligible for the UPS.
Prior to the introduction of the UPS, employees enrolled in the NPS did not receive a fixed pension. Pension payouts depended on the contributions from both the employee and the government, which were invested in market-linked instruments. As a result, the payouts were subject to market fluctuations.
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