Indian govt. approves new pension scheme

The Indian government has approved the Unified Pension Scheme (UPS) for federal government employees, offering them a choice between this new plan and the existing National Pension Scheme.

The Unified Pension Scheme provides an assured pension of 50 per cent of the average basic pay drawn by an employee over the last 12 months before retirement, provided they have completed a minimum qualifying service of 25 years.

For employees with a shorter service period, the pension will be proportionate, with a minimum of 10 years of service required to qualify.

Additionally, the scheme guarantees a minimum pension of 10,000 Indian rupees per month upon retirement after completing at least 10 years of service.

Furthermore, the Unified Pension Scheme offers an assured family pension of 60 per cent of the employee’s pension, which will be paid immediately upon their demise.

Attribution: Government statement

Subediting: M. S. Salama