Unified pension scheme revised: Central employees to receive OPS-like gratuity; Rs 10k minimum pension
Representative image
NEW DELHI: All Central government employees covered under the
Unified Pension Scheme
(UPS) will receive retirement and death gratuity benefits similar to the Old Pension Scheme (OPS), Union minister of state for personnel Jitendra Singh said on Wednesday.
The inclusion of death-cum-retirement gratuity in UPS, a long-pending demand of a large section of Central government staffers, is expected to encourage many covered under
National Pension System
(NPS) to opt for it.
Singh, who was addressing a press conference in Delhi on the 'transformational' journey of ministry of personnel, public grievances and pensions over the last 11 years, said the assured payout under UPS 'reflects the government's commitment to ensure social security for all categories of employees under the NPS'.
The department of financial services had notified UPS on January 24, 2025, with the aim of providing Central government employees covered under NPS, a guaranteed pension similar to OPS but with a contribution model like NPS.
Employees covered under NPS can switch to UPS, ensuring broader pension coverage. The scheme guarantees a pension amount of 50 per cent of the average basic salary earned over 12 months before retirement for those with at least 25 years of service.
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Additionally, employees with a minimum of 10 years of service are entitled to a minimum pension of Rs 10,000 per month upon superannuation.
In the event of the pensioner's death, their family will receive 60 per cent of the last pension drawn. Employees contribute 10% of their basic salary and DA, while the government contributes 18.5 per cent, a higher share than 14 per cent under NPS.
An order issued by the department of pensions and pensioners' welfare (DoPPW) on Wednesday clarified that central government employees covered under the UPS shall also be eligible for the benefit of retirement gratuity and death gratuity under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021.
A second order specified options to avail benefits under OPS on death of a government servant covered under UPS, during service or his discharge from service on account of invalidation or disability.
'The order gives an option to revert to OPS in case of death in service. It is progressive in nature and addresses the clarifications being sought by employees,' DoPPW Secretary V Srinivas said, adding that 'UPS pensioners will be eligible for Rs 25 lakh gratuity also'.
President of the All India NPS Employees Federation, Manjeet Singh Patel, welcomed the order, saying that the inclusion of death-cum-retirement gratuity in UPS will remove all the misconceptions of the employees and encourage them to opt for UPS, said PTI.
In the case of the death of a government servant while in service, the last option exercised by the deceased employee before his death shall be treated as final, and the family shall have no right to revise the option.
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