Cabinet approves 50 pc of salary as assured pension for govt employees

New Delhi, Aug 24 (Mayank Nigam) The Union Cabinet chaired by Prime Minister Narendra Modi on Saturday approved Unified Pension Scheme (UPS) for central government employees providing for assured pension, family pension and assured minimum pension. The new pension scheme will come into effect from April 1, 2025. Briefing media on Cabinet decisions, Union Information and Broadcasting Minister (I&B) Minister Ashwini Vaishnaw said that the assured pension under UPS would be 50% of the average basic pay drawn over the last 12 months prior to superannuation. He further said that the qualifying service for being eligible for full pension amount will be 25 years.

“For those who have been in government service for less than 25 years but more than 10 years the pension amount will be calculated on a pro rata basis,” the Minister said. In case of death of an employee, the pensioner’s family will get 60% of the pension received at the time of death. The NPS also provides for assured minimum pension of Rs 10,000 per month after retirement of the employees after a minimum of 10 years of service. Vaishnaw said that around 23 lakh employees of the central government would benefit from the Unified Pension Scheme. “This (UPS) will also apply to all those who have already retired under NPS (New Pension Scheme) from 2004 onwards. So, though the new scheme will take effect from April 1, 2025 everybody who has retired under NPS from the time of its inception and also including those retiring till 31/3/2025 will also be eligible for all these five benefits.

In their case they will also get arrears for the past after adjusting whatever they have already drawn, ” Cabinet Secretary (Designate) T V Somanathan said. The Cabinet also approved ‘BioE3 (Biotechnology for Economy, Environment and Employment) policy for fostering high performance biomanufacturing’. “This policy consists of six major pillars. This foundational initiative has been undertaken to propel the country ahead in the field of Biosciences & Biotechnology,” the I&B Minister said. An official statement said that the BioE3 Policy will foster and advance future that is more sustainable, innovative, and responsive to global challenges and lays down the Bio-vision for Viksit Bharat. The Union Cabinet also gave its nod to continuation of three umbrella schemes of Department of Science & Technology (DST), merged into a unified central sector scheme ‘Vigyan Dhara’. The proposed outlay for Vigyan Dhara is Rs 10,579 crore during 15th Finance Commission period from 2021-22 to 2025-26.