The Unified Pension Scheme (UPS) assures 50 percent of the average basic salary for the last 12 months before retirement as the pension for government employees who complete a minimum of 25 years in service.
It will be proportionate for a shorter service period up to a minimum of 10 years of service. In case of death, the family will get 60 percent of the last-drawn amount by the pensioner.
The scheme also assures a minimum ₹ 10,000 per month after retirement for government employees after minimum 10 years of service.
Employee contributions will remain unaltered at 10 per cent of basic pay plus dearness allowance (DA). The government's contribution will increase from the present 14 per cent to 18.5 per cent.
UPS will have a retrospective effect, i.e., those who joined after January 1, 2004 and retired under the NPS will now be eligible for UPS.
The scheme also includes inflation indexation and a lump-sum payment upon superannuation, reinforcing the government's commitment to employee welfare.