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Gratuity benefits extended to unified pension scheme
- The Union government has extended gratuity benefits to those covered under the Unified Pension Scheme (UPS), aligning it more closely with the Old Pension Scheme (OPS).
- Central government employees under UPS are now eligible for gratuity payouts under the Central Civil Service Rules, offering financial reassurance at retirement or in case of death.
- This move follows appeals by staff unions to match NPS-linked schemes with OPS benefits, providing employees under UPS with up to Rs 25 lakh in gratuity.
- The Unified Pension Scheme, combining NPS and OPS features, includes a guaranteed monthly pension and a minimum pension amount for qualifying employees.
- Government employees contribute 10% of their salary plus DA, while the government's contribution now stands at 18.5%, higher than under NPS.
- Families of UPS-covered employees now have the option to revert to OPS in cases of death, incapacitation, or disability, if the option was previously chosen by the deceased.
- This decision is seen as a progressive reform enhancing social security and retirement certainty, aiming to promote wider adoption of the UPS model.
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