New Pension Scheme for Central Government Employees to Launch on April 1 – Key Details

Who is Eligible for the New Pension Scheme?

The Integrated Pension Scheme will be available to:

• Central government employees already enrolled in NPS.
• Employees who choose to opt for the new Integrated Pension Scheme within the NPS structure.
• Retired employees who were previously under NPS, with arrears paid along with PPF interest rates.

Key Benefits of the Integrated Pension Scheme

• Retired employees will receive 50% of their average basic salary from the last 12 months before retirement as pension, provided they have served for a minimum of 25 years.
• The government’s contribution will increase from 14% to 18.5%.
• Employees’ contribution will remain unchanged.
• In case of an employee’s unfortunate demise, their family will receive 60% of the pension amount.
• Employees retiring after at least 10 years of service will be entitled to a minimum pension of ₹10,000 per month.

Who Can Opt for This Scheme?

• Employees under NPS and VRS can choose to shift to UPS.
• The option, once chosen, will be final.
• The scheme is expected to benefit around 23 lakh central government employees.
• If state governments implement it, over 90 lakh government employees currently under NPS may also benefit.

What’s Next?

The Finance Ministry has confirmed that eligible employees can switch to the Integrated Pension Scheme within the NPS framework. As the deadline approaches, central employees should evaluate their options and make an informed decision about their post-retirement financial security.

Stay tuned for more updates on government policies and employee benefits.