SRINAGAR: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS) on Saturday.
The salient features of the UPS are an assured pension, which is 50 percent of the average basic pay drawn over the last 12 months before superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for a lesser service period upto a minimum of 10 years of service.
Another feature is it assures family pension at 60 percent of the pension of the employee immediately before her or his demise.
Yet another feature of the Unified Pension Scheme is an assured minimum pension of 10,000 per month on superannuation after a minimum of 10 years of service.
It also ensures inflation indexation on assured pension, assured family pension, and assured minimum pension.
Another feature of the Unified Pension Scheme is dearness relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) as in the case of service employees lump sum payment at superannuation in addition to gratuity 1/10th of monthly emoluments (pay plus DA) as on the date of superannuation for every completed six months of service this payment will not reduce the quantum of assured pension.
