There is a great news for all the central government employees. Now all the government employees included in the Unified Pension Scheme (UPS) will also be entitled to the retirement and death gratuity benefits under the Old Pension Scheme (OPS).
This announcement was made by Union Minister Dr. Jitendra Singh. He said that this decision is a big step towards ensuring social security and financial stability of the government’s employees.
What is UPS and its benefits?
Unified Pension Scheme (UPS) is a new scheme recently implemented by the government from 1 April 2025. It has been brought under the framework of National Pension System (NPS), but some benefits of OPS have also been added to it.
The scheme aims to create a hassle-free and assured pension system for Government employees to provide them better financial security after retirement.
Equal benefits for NPS and UPS employees
Dr Jitendra Singh said that the Government is accepting a major demand of the employees for gratuity facility like OPS under NPS also.
Now employees covered under both NPS and UPS will be eligible for gratuity up to Rs 25 lakh in case of death, disability or retirement during service.
DOPPW issues order
The Department of Pension and Pensioners’ Welfare (DOPPW) of the Personnel Ministry on Wednesday issued an order, stating that employees covered under UPS will now get the option to avail benefits under OPS in case of “death or disability during service”.
This will not only provide mental satisfaction to the employees but will also provide financial support to their families.
Employee organizations called it a historic decision.
Manjit Singh Patel, President of All India NPS Employees Federation, welcomed this decision of the government. He said that this will end the confusion about the future of the employees and more employees will now be ready to adopt UPS.
Summary of reform in pension rules
UPS implemented from April 1, 2025
Gratuity facility like OPS in UPS
Option of OPS in case of death or disability
Gratuity eligibility up to Rs 25 lakh
Guaranteed safety during service
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