Cabinet approves assured pension for govt employees; makes NPS attractive
Public Lokpal
August 25, 2024
Cabinet approves assured pension for govt employees; makes NPS attractive
NEW DELHI: Union Cabinet on Saturday approved an assured 50 per cent of salary as pension for 23 lakh government employees who joined service under the National Pension System (NPS).
The National Pension System is applicable for government employees joining the service after April 1, 2004. It was based on the premise of contribution rather than defined benefit applicable for employees prior to the NPS.
Announcing Cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the Unified Pension Scheme (UPS) announced that government employees will now be eligible to get 50 per cent of the average basic pay drawn over the last 12 months before the superannuation as pension.
In a bonanza to 23 lakh central government employees, the Union Cabinet on Saturday approved an assured pension of 50 per cent of salary for those who joined the service after January 1, 2004, under the National Pension System (NPS).
Fulfilling long pending demands of government employees ahead of assembly elections in Haryana and Jammu and Kashmir, the Cabinet meeting, chaired by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS), which assures guaranteed pension.
Employees opting for UPS would be eligible for an assured pension of 50 per cent of the average basic pay drawn over the last 12 months before the superannuation for a minimum qualifying service of 25 years.