In June 2025, the Ministry of Personnel, Public Grievances and Pensions (MoPPG&P) issued an office memorandum on providing Old Pension Scheme (OPS) benefits to the Central Government employees, subscribed for Unified Pension Scheme (UPS).
- The Department of Pension and Pensioners’ Welfare (DoPPW) under MoPPG&P has issued instructions that central government employees who opt for UPS will be entitled to benefits in the OPS under the Central Civil Services (CCS)(Payment of Gratuity under NPS) Pension Rules, 2021, or the CCS (Extraordinary Pension) Rules 2023.
Revised Instructions:
i.The central government employees who opted for UPS will get benefits under the OPS if the employee dies while in government service or if discharged due to invalidation or disablement.
ii.Employees covered under the New Pension Scheme (NPS) can switch to UPS, ensuring broader pension coverage. UPS guarantees a pension of 50% of the average basic salary earned over 12 months before retirement for those with at least 25 years of service.
iii.Additionally, employees with a minimum of 10 years of service are entitled to a minimum pension of Rs.10,000 per month upon superannuation.
iv.In event of the pensioner’s death, the pensioner’s family will receive 60% of the last pension drawn.
v.Employees contribute 10% of their basic salary and Dearness Allowance (DA), while the government contributes 18.5%, a higher share than 14% under NPS.
vi.The order gives an option to OPS in case of death in service. UPS pensioners will be eligible for Rs.25 lakh gratuity.
vii.In case of the death of a government servant while in service, the last option exercised by the deceased employee before his death will be treated as final, and the family does not have the right to revise the option.
About Unified Pension Scheme (UPS):
i.The UPS is a new pension model introduced by the Government of India(GoI) for central government employees.
ii.It combines features of both the Old Pension Scheme (OPS) and the National Pension System (NPS), aiming to offer a balanced approach to retirement planning.
iii.Launched on January 24, 2025 by the Department of Financial Services (DFS), Ministry of Finance(MoF), the scheme became effective from April 1, 2025.
iv.It seeks to ensure guaranteed retirement and death gratuity benefits similar to OPS, while also promoting financial security, flexibility, and parity in retirement benefits for government employees.
About the Ministry of Personnel, Public Grievances and Pensions (MoPPG&P):
Minister of State (MoS) (Independent Charge, IC) – Dr. Jitendra Singh (Constituency – Udhampur, Jammu and Kashmir, J&K)
