Union Cabinet approved the Unified Pension Scheme for government employees

Current Context: On August 24, 2024, the Union Cabinet approved the Unified Pension Scheme (UPS) for central government employees.

• This scheme is set to take effect from April 1, 2025, and aims to provide enhanced financial security for government employees.
• Here are some key points about the scheme:
• Guaranteed Pension: Employees with at least 25 years of service will receive a pension equal to 50% of their average basic pay from the last 12 months before retirement.
• Family Pension: In case of an employee’s death, their spouse will receive a family pension amounting to 60% of the employee’s pension.
• Minimum Pension: The scheme ensures a minimum pension of ₹10,000 per month for retired employees with at least 10 years of service.
• This move is expected to benefit around 23 lakh central government employees.

Question:

1 Under the UPS, in the event of a central government employee’s death, what percentage of the employee’s pension will their spouse receive as a family pension?

• A) 60%
• B) 50%
• C) 55%
• D) 70%

Answer: A) In case of an employee’s death, their spouse will receive a family pension amounting to 60% of the employee’s pension under the UPS.