Assured Pension Yet to Assure: Govt Employees Seek Clarity, Deadline Extended

Despite a campaign promoting assured pensions, only a small proportion of central government employees have opted for the Unified Pension Scheme (UPS), which offers an assured pension of 50%. Many employees have sought further clarifications before exercising this one-time switching option.

In response, the government has extended the deadline by three months, moving it from the end of June to the end of September. Employees are keen to fully understand the terms and implications of the scheme before making a final decision.

A key concern among employees who joined the National Pension System (NPS) from 2004 onwards is the lack of clarity on death benefits under the new scheme. Although the government provided some assurances last week, several issues remain unresolved.

Under the UPS:

• Employees contribute 10% of their salary towards the pension.

• The central government will contribute a matching 10%, plus an additional 8.5%, which will not be reflected in the subscriber's individual account balance.

This differs from the NPS, where the Centre contributed 14%. While most employees understand this structural shift, some are apprehensive that the actual pension payout may be lower under UPS.

Additionally, All India Services (AIS) officers—including those from the IAS, IPS, and Indian Forest Service—have raised questions about disparities between central and state government contributions. These officers often serve in both state and central deputations, and although the rules are generally clear, some ambiguities persist.

Meanwhile, fund managers tasked with outreach efforts have expressed concern over misinformation allegedly spread by private players. These entities, which may lose annuity-related business under the UPS, are suspected of instilling doubts among employees.

The UPS option is available to approximately 23 lakh government employees, who now have until the end of September to make their decision.