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News18
a day ago
- Politics
- News18
Unified Pension Scheme: Employees Now Eligible For Retirement, Death Gratuity Benefits, Says Minister
Last Updated: Jitendra Singh, the Minister of State for Personnel, says the new provision reflects government's commitment to ensure social security for all categories of employees under NPS. All central government employees part of the Unified Pension Scheme (UPS) will now be eligible for retirement and death gratuity benefits available under the Old Pension Scheme (OPS), Union Minister Jitendra Singh said on Wednesday. Responding to this long-pending demand by a large section of government employees, he said, the move addresses a significant demand of government staff and brings parity in retirement benefits. Singh, the Minister of State for Personnel, said the new provision reflects the government's commitment to ensure social security for all categories of employees under the National Pension System (NPS). Addressing a presser on the 'transformational" journey of the Ministry of Personnel, Public Grievances and Pensions over the last 11 years, he highlighted a series of reforms aimed at simplifying governance, empowering citizens, and humanising administration. Central government employees covered under the UPS will now be eligible for retirement and death gratuity benefits, as per the provisions of the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021, Singh said. The Department of Pension and Pensioners' Welfare (DoPPW), under the Personnel Ministry, on Wednesday issued an order on the 'options to avail benefits under Old Pension Scheme on death of government servant during service or his discharge from government service on account of invalidation or disability for central government servants covered under Unified Pension Scheme". 'The order gives an employee the 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 told PTI. President of the All India NPS Employees Federation, Manjeet Singh Patel, welcomed the order and termed it a historic and much-needed move by the government. Patel said the inclusion of death-cum-retirement gratuity in UPS will remove all the misconceptions of the employees. He said, the inclusion of OPS benefits in case of death or disability of any employee during the service under UPS is a great justice. 'Therefore, a lot of employees will opt for the UPS now," Patel said. The DoPPW had notified the Central Civil Services (Implementation of National Pension System) Rules, 2021, to regulate service-related matters of central government employees covered under the NPS. Under these, Rule 10 provides for the option to be exercised by every central government employee covered under the NPS for availing benefits under the NPS or the Old Pension Scheme in the event of death of a government servant during service or his discharge on the ground of invalidation or disablement. 'UPS has been notified as an option under the NPS. Therefore, it has been decided that the central government civil employees who opt for UPS under the NPS shall also be eligible for option for availing benefits under UPS or the CCS (Pension) Rules, 2021 or the CSS (Extraordinary Pension) Rules, 2023 in the event of death of the government servant during service or his discharge on the ground of invalidation or disablement," the order said. The finance ministry, on January 24, issued a notification regarding the introduction of UPS as an option under the NPS for recruits to the central government civil service with effect from April 1, 2025. It gives a one-time option to the central government employees covered under the NPS for inclusion under the UPS. Every central government servant who opts for the UPS under the National Pension System shall, at the time of joining the service, exercise an option in Form 1 for availing benefits under the UPS or under the CCS (Pension) Rules, 2021 or the CCS (Extraordinary Pension) Rules, 2023 in the event of his/her death or boarding out on account of disablement or retirement on invalidation, the order said. 'Existing government servants, who have opted for the Unified Pension Scheme under the National Pension System, shall also exercise such option as soon as possible after the notification of these clarifications," it said. 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, said the order issued to all central government departments. The DoPPW also issued another order on Wednesday to clarify that the 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. DoPPW Secretary Srinivas said this order 'brings parity between the NPS and UPS pensioners and they will be eligible for Rs 25 lakh gratuity also". Both these orders were released by Singh during the conference. What Is Unified Pension Scheme? The Union Cabinet in August 2024 approved the Unified Pension Scheme (UPS), for an assured pension post-retirement. The UPS has been implemented from April 1, 2025. The move comes after the long-pending demand of the central government employees to reform the new pension scheme (NPS). It is the latest pension scheme for government employees. Under the UPS, there will be a provision of a fixed assured pension, unlike the New Pension Scheme (NPS) which does not promise a fixed pension amount. The Unified Pension Scheme has five pillars: Assured Pension: Under the UPS, the fixed pension will be 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period up to a minimum of 10 years of service. Assured Family Pension: It will also have an assured family pension, which is 60 per cent of the pension the employee was receiving. It will be given immediately in case of the retiree's demise. Assured Minimum Pension: In the case of superannuation after a minimum 10 years of service, the UPS has a provision of an assured minimum pension of Rs 10,000 per month. Inflation Indexation: There is a provision of indexation benefit on assured pension, on assured family pension and assured minimum pension. top videos View all Gratuity: Lump-sum payment at superannuation in addition to gratuity. It will be 1/10th of the monthly emolument (pay + dearness allowance) as on the date of superannuation for every completed six months of service. This payment will not reduce the quantum of assured pension. (With Inputs from PTI) About the Author Business Desk A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : National Pension Scheme (NPS) Location : New Delhi, India, India First Published: June 18, 2025, 19:19 IST News business » savings-and-investments Unified Pension Scheme: Employees Now Eligible For Retirement, Death Gratuity Benefits, Says Minister
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Business Standard
a day ago
- Business
- Business Standard
Centre brings parity in gratuity under old and new pension schemes
Central government employees under the Unified Pension Scheme (UPS) will be eligible for retirement and death gratuity benefits similar to those provided by the Old Pension Scheme (OPS), said Union Minister Jitendra Singh on Wednesday. Long-pending demand fulfilled The change 'addresses a significant demand of government staff and brings parity in retirement benefits,' Singh, who is minister of state for personnel, was quoted by PTI as saying. Singh described the decision as part of the government's efforts to extend social security to all categories of employees under NPS. The Department of Pension and Pensioners' Welfare (DoPPW) has issued an order enabling employees under UPS to avail of retirement and death gratuity benefits under the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021. Key changes and benefits PTI quoted DoPPW Secretary V Srinivas as saying, 'The order gives an employee the option to revert to OPS in case of death in service. It is progressive in nature and addresses the clarifications being sought by employees.' The new orders clarify that: Government employees under UPS will receive retirement and death gratuity. In case of death or invalidation during service, employees can opt for OPS benefits. Gratuity up to Rs 25 lakh will be available under the amended rules. PTI also reported that a separate order confirms the parity of benefits between UPS and OPS pensioners. 'The inclusion of death-cum-retirement gratuity in UPS will remove all the misconceptions of the employees,' said Manjeet Singh Patel, president of the All India NPS Employees Federation, according to PTI. The Finance Ministry had earlier notified the introduction of UPS as an option under NPS starting April 1, 2025. According to PTI, the notification allows a one-time option to new central government recruits and requires existing UPS subscribers to formally choose between UPS and the CCS (Pension) Rules or Extraordinary Pension Rules.
Time of India
a day ago
- Business
- Time of India
Old Pension Scheme benefits in UPS: Central Govt employees can claim OPS benefits in Unified Pension Scheme for these cases
Conditions in which central government employees in UPS will get OPS benefits Even Central Government employees under NPS can avail OPS benefits How new circular helps central government employees What is Unified Pension Scheme (UPS)? The Ministry of Personnel, Public Grievances & Pensions has issued an office memorandum on providing Old Pension Scheme (OPS) benefits to the Cental Government employees who have subscribed for Unified Pension Scheme (UPS). The Department of Pension and Pensioners' Welfare (DoPPW) has issued instructions that those who opt for UPS will be entitled to benefits in the OPS under the CCS (Pension) Rules, 2021, or the CCS (Extraordinary Pension) Rule,s 2023. However, OPS benefits will be available under the specified conditions instructions have been issued by the DoPPW on June 18, to the instructions issued, central government employees who opted for Unified Pension Scheme (UPS) will get benefits under the Old Pension Scheme (OPS) if the employee dies while in government service or if discharged due to invalidation or press release stated that 'The DoPPW issued Office Memorandum on 18 June 2025, stating has issued instructions extending the option to Central Government civil employees covered under Unified Pension Scheme (UPS) for availing benefits of the Old Pension Scheme under the CCS(Pension) Rules, 2021 or the CCS(Extraordinary Pension ) Rules, 2023 in the event of death of Government employees or his discharge from service on account of invalidation or disablement.'The DoPPW has issued a circular last year in October, 2024 clarifying that central government employees who are covered under National Pension System (NPS) can also avail the OPS benefits in certain government circular states that "Rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021, allows every central government employee covered under the National Pension System to choose between benefits from the National Pension System or Old Pension Scheme in the event of the death of a government servant during service or their discharge on the grounds of invalidation or disablement."According to experts, the circular dated October 25, 2024, asks the central government employees to formally opt for either NPS or OPS in case of death during service, invalidation, or disability retirement. The directive clarifies that Rule 10 applies only to employees who joined the central government service on or after January 1, 2004, and are covered under NPS. This provision enables them to choose pension benefits under NPS or OPS in specific circumstances, ensuring financial security for their families in case of unforeseen Read: Central government employees, in NPS, can choose OPS under certain conditions; Check eligibility, forms to submit The DoPPW has extended the facility of availing OPS benefits for central government employees covered under UPS as well. Hence, central government employees who have opted for the UPS have an option to avail the benefits under OPS in case of specified Unified Pension Scheme (UPS) is introduced by the Central Government as an option under the National Pension System (NPS) for Central Government employees with effect from 1st April 2025. The UPS provides assured pay-out based on the prescribed an existing Central Government employee in service as of 1 April 2025, who are covered under National Pension System (NPS) is eligible to opt for a newly recruited Central Government employees joining service on or after 1 April 2025 is eligible to opt for UPS.
Time of India
a day ago
- Business
- Time of India
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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo 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.
Time of India
2 days ago
- Business
- Time of India
Employees under Unified Pension Scheme now eligible for retirement, death gratuity benefits
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: All central government employees part of the Unified Pension Scheme UPS ) will now be eligible for retirement and death gratuity benefits available under the Old Pension Scheme (OPS), Union Minister Jitendra Singh said on to this long-pending demand by a large section of government employees, he said, the move addresses a significant demand of government staff and brings parity in retirement benefits Singh, the Minister of State for Personnel , said the new provision reflects the government's commitment to ensure social security for all categories of employees under the National Pension System (NPS).Addressing a presser on the "transformational" journey of the Ministry of Personnel, Public Grievances and Pensions over the last 11 years, he highlighted a series of reforms aimed at simplifying governance, empowering citizens, and humanising government employees covered under the UPS will now be eligible for retirement and death gratuity benefits, as per the provisions of the Central Civil Services (Payment of Gratuity under National Pension System) Rules, 2021, Singh Department of Pension and Pensioners' Welfare (DoPPW), under the Personnel Ministry, on Wednesday issued an order on the "options to avail benefits under Old Pension Scheme on death of government servant during service or his discharge from government service on account of invalidation or disability for central government servants covered under Unified Pension Scheme"."The order gives an employee the 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 told of the All India NPS Employees Federation , Manjeet Singh Patel, welcomed the order and termed it a historic and much-needed move by the said the inclusion of death-cum-retirement gratuity in UPS will remove all the misconceptions of the said, the inclusion of OPS benefits in case of death or disability of any employee during the service under UPS is a great justice."Therefore, a lot of employees will opt for the UPS now," Patel DoPPW had notified the Central Civil Services (Implementation of National Pension System) Rules, 2021, to regulate service-related matters of central government employees covered under the these, Rule 10 provides for the option to be exercised by every central government employee covered under the NPS for availing benefits under the NPS or the Old Pension Scheme in the event of death of a government servant during service or his discharge on the ground of invalidation or disablement."UPS has been notified as an option under the NPS. Therefore, it has been decided that the central government civil employees who opt for UPS under the NPS shall also be eligible for option for availing benefits under UPS or the CCS (Pension) Rules, 2021 or the CSS (Extraordinary Pension) Rules, 2023 in the event of death of the government servant during service or his discharge on the ground of invalidation or disablement," the order finance ministry, on January 24, issued a notification regarding the introduction of UPS as an option under the NPS for recruits to the central government civil service with effect from April 1, 2025. It gives a one-time option to the central government employees covered under the NPS for inclusion under the central government servant who opts for the UPS under the National Pension System shall, at the time of joining the service, exercise an option in Form 1 for availing benefits under the UPS or under the CCS (Pension) Rules, 2021 or the CCS (Extraordinary Pension) Rules, 2023 in the event of his/her death or boarding out on account of disablement or retirement on invalidation, the order said."Existing government servants, who have opted for the Unified Pension Scheme under the National Pension System, shall also exercise such option as soon as possible after the notification of these clarifications," it 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, said the order issued to all central government DoPPW also issued another order on Wednesday to clarify that the 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, Secretary Srinivas said this order "brings parity between the NPS and UPS pensioners and they will be eligible for Rs 25 lakh gratuity also".Both these orders were released by Singh during the conference.
