Notification of Integrated Pension Scheme released, central employees to be able to apply from April 1
New Delhi| Pension Fund Regulatory and Development Authority (PFRDA) on Thursday issued a notification regarding the Integrated Pension Scheme (UPS). Under this, central employees will get a pension equal to 50 per cent of the average salary received in the last 12 months before retirement. The notification follows the UPS notification issued on 24 January 2025 by the government for central government employees covered under the National Pension System (NPS).
PFRDA said that the new rules will come into effect from April 1, 2025. Under this, Central Government employees including Central Government employees working in the service till April 1, 2025, who come under NPS and newly recruited employees in Central Government services, who join the service on or after April, 2025, will be able to enroll. Enrollment and claim forms for all these categories for employees will be available online on the website https://npscra.nsdl.co.in from April 1, 2025. Apart from this, employees will also be able to submit the form physically.
UPS or other payments will not be made in case the employee is removed from service or dismissed or resigns, the notification said. The rate of full payment shall be 50 per cent of the 12-month average basic salary subject to 25 years of minimum service and immediately prior to retirement. The notification will give 2.3 million government employees the option to choose between UPS and NPS, which came into effect on 1 January 2004. UPS was approved by the Union Cabinet chaired by Prime Minister Narendra Modi on 24 August 2024.
Employees received 50 per cent of their last drawn basic salary as pension under the old pension scheme (OPS) in effect before January 2004. Unlike the old pension scheme, UPS is contributory. In this, employees will have to contribute 10 percent of their basic salary and dearness allowance while the employer’s (central government) contribution will be 18.5 percent. However, the final payment will depend on the market return on that fund. It is invested in government debt.
