No proposal under consideration for restoration of Old Pension Scheme: FM Sitharaman 

With a view to improving upon the pensionary benefits for such employees, a committee was constituted under the chairpersonship of the then Finance Secretary to suggest measures to modify the NPS, she said.

Based on the deliberations of the committee with stakeholders, Unified Pension Scheme (UPS) has been introduced as an option under NPS with the objective of providing defined benefits after retirement to the central government employees covered under the NPS, she said.

The features of UPS, including the definition of family, have been designed in such a way as to ensure payment of assured payouts while also maintaining fiscal sustainability of the fund, she said.

Further, she said, the government employees who opt for UPS under NPS would also be eligible for option for availing benefits under the CCS (Pension) Rules, 2021 or the CCS (Extraordinary Pension) Rules, 2023, in the event of death of the government servant during service or his discharge on the ground of invalidation or disablement.

UPS has been introduced through a notification by the government on January 24, 2025, as an option under NPS, she said.

Under UPS, she said, assured payout is admissible on retirement at 50 per cent of the twelve-month average basic pay, immediately prior to retirement after a minimum 25 years of qualifying service.

In case of a lesser qualifying service period, proportionate payout would be admissible, she said.

(With agency inputs)