TestCloud
Prep • Practice • Perform
Log In

MoF Notifies Unified Pension Scheme for Central Government Employees, Effective from April 1, 2025.

National | Dated: 29 Jan 2025

In January 2025, the Ministry of Finance (MoF) notified the Unified Pension Scheme (UPS) as an option for central government employees already covered under the National Pension System (NPS). The scheme aims to provide retirees with assured pensions, ensuring financial security and dignity post-retirement.

🎯 Key Highlights:

  • - As per MoF, the Pension Fund Regulatory and Development Authority (PFRDA) will oversee UPS regulations and issue operational guidelines.
  • - The scheme will come into effect from April 1, 2025.

💡 Other Important Facts:

  • (i) It is voluntary for existing NPS employees and those opting for the Voluntary Retirement Scheme (VRS) under NPS to switch to UPS. However, once switched, it cannot be reversed.
  • (ii) The scheme follows a contributory model, requiring central government employees to contribute 10% of their basic salary and Dearness Allowance (DA).
  • (iii) The central government has increased its contribution from 14% (currently under NPS) to 18.5%.

📚 Test Your Knowledge:

Which ministry recently notified the Unified Pension Scheme (UPS) for central government employees?

Correct Answer: MoF

🚀 Quick Recap:

About MoF

  • Minister : Nirmala Sitharaman
  • Headquarters : New Delhi