In a landmark decision, the Union Cabinet approved the Unified Pension Scheme (UPS) on Saturday, promising significant changes for approximately 23 lakh government employees currently under the National Pension System (NPS). The scheme, effective from April 1, 2025, will guarantee an assured 50 percent of the average basic pay drawn over the last 12 months before retirement.Union Minister for Information and Broadcasting Ashwini Vaishnaw outlined the key features of the UPS, highlighting that employees with a minimum of 25 years of service will be eligible for full pension benefits. For those with at least 10 years of service, pensions will be proportionate. This new scheme offers a substantial shift from the contribution-based NPS, which was introduced for employees joining after April 1, 2004, in contrast to the Old Pension Scheme (OPS).The decision to introduce the UPS follows recommendations from a committee led by Finance Secretary T.V. Somanathan, which was established to address calls for pension reforms. This development comes amid a trend of some non-BJP-ruled states reverting to the OPS, which includes dearness allowance.**Key Features of the Unified Pension Scheme:**- A minimum monthly pension of ₹10,000 after 10 years of service, with proportionate benefits for shorter service periods.- An assured family pension at 60 percent of the employee’s pension.- Inflation indexation based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) to adjust pensions and family pensions for inflation.- A lump sum payment upon retirement.- Gratuity equivalent to one-tenth of monthly emoluments (pay plus dearness allowance) for every completed six months of service.Prime Minister Narendra Modi praised the scheme on X, emphasizing the government’s commitment to the well-being and financial security of its employees. “We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future,” Modi stated.