The Union Cabinet, chaired by the Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS).
The salient features of the UPS are:
Assured pension: 50% 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 upto a minimum of 10 years of service.
Assured family pension: @60% of pension of the employee immediately before her/his demise.
Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
Inflation indexation: on assured pension, on assured family pension and assured minimum pension.
Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees.
Lump sum payment at superannuation in addition to gratuity.
1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service. This payment will not reduce the quantum of assured pension.
