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UP POLICE CONSTABLE RE-EXAM 2023 FIRST SHIFT PAPER 31 AUG 2024

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Unified Pension Scheme

The Cabinet on August 24, 2024, approved the implementation of the Unified Pension Scheme (UPS), a reform aimed at benefiting approximately 23 lakh government employees. The new scheme , in addition to gratuity, will incorporate a lump sum payment upon superannuation.

Key features of the Unified Pension Scheme:

Assured Pension : Under the UPS, retiring government employees will receive 50% of their average pay from the last 12 months prior to retirement, provided they have completed a minimum of 25 years of service

Assured Family Pension: In the event of a government employee’s death, the scheme ensures that 60% of the pension amount will be allocated to the spouse.

Assured Minimum Pension: Employees will be entitled to a guaranteed minimum pension of ₹10,000 per month upon retirement, applicable after 10 years of service.

Inflation Indexation: The scheme includes provisions for inflation indexation for assured pensions, family pensions, and the minimum pension, ensuring that benefits maintain their value over time.

Scheme Options: Central government employees will have the option to choose between the new Unified Pension Scheme and the existing New Pension Scheme.

Pension Contribution: The staff contribution to the scheme will remain at 10%, unchanged from the previous structure. However, the Central Government's contribution will be reassessed every three years.

Expenditure: The financial implications include a total expenditure of ₹800 crore for arrears, with an estimated initial annual cost of ₹6,250 crore for the scheme.

Implementation: The UPS is set to take effect from April 1, 2025. It will also be applied retroactively to government employees who retired from 2004 onwards.

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