The government announced the Unified Pension Scheme on Saturday, aiming to combine the advantages of both the new and old pension systems into a balanced approach. The UPS is designed to provide both, a defined benefit pension and adjust against inflation.
Under the new scheme, government employees will receive a pension equal to 50% of the average basic pay that they had earned over the last 12 months before retirement, according to Union Information and Broadcasting Minister Ashwini Vaishnaw.
To qualify for the full pension, employees must have served for 25 years. However, it would be proportionate for a lesser service period up to a minimum of 10 years of service, the minister said.
Let's dive into key aspects of the UPS, and the differences between the three schemes:
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