MINISTRY OF FINANCE
(Department of Financial Services) NOTIFICATION
New Delhi,
the 24th January,
2025
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| Unified Pension Scheme Gazette Notification PDF Download Official, www.pufin.in |
F. No. FX-1/3/2024-PR.—In partial modification of the
Ministry of Finance (Department of Economic Affairs) Notification No. F. No.
5/7/2003-ECB&PR dated 22nd December, 2003 and Ministry of Finance
(Department of Financial Services) Notification No. F. No. 1/3/2016-PR dated
31st January, 2019, the Central Government has decided to introduce Unified
Pension Scheme, as an option under the National Pension System for the
employees of the Central Government who are covered under the National Pension
System.
2. The
Unified Pension Scheme shall be applicable to such Central Government employees
who are covered under National Pension System and who choose this option under
National Pension System. It will have the following features, namely: -
Eligibility under the Scheme
(i) Assured
Payout shall be available only in the following cases, namely: -
(a) in case of
an employee superannuating after qualifying service of ten years, from the date
of superannuation;
(b) in case of
the Government retiring an employee under the provisions of FR 56 (j) (which is
not a
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penalty under Central Civil Services (Classification,
Control and Appeal) Rules, 1965) from the date of such retirement; and
(c) in case
of voluntary retirement after a minimum qualifying service period of 25 years,
from the date such employee would have superannuated, if the service period had
continued to superannuation.
(ii) Assured
Payout shall not be available in case of removal or dismissal from service or
resignation of the employee. In such cases, the Unified Pension Scheme option
shall not apply.
Benefits under the Scheme
(iii) Subject
to other conditions stated in this notification, Assured Payout under the
scheme shall be as follows, namely: -
(a) the rate
of full assured payout will be @50% of twelve monthly average basic pay,
immediately prior to superannuation. Full assured payout is payable after a
minimum 25 years of qualifying service;
(b) in case of
lesser qualifying service period, proportionate payout would be admissible;
(c) a minimum
guaranteed payout of Rs. 10,000 per month shall be assured in case
superannuation is after ten years or more of qualifying service; and
(d) in cases
of voluntary retirement after a minimum 25 years of qualifying service, assured
payout will commence from the date on which the employee would have
superannuated, if he had continued in service.
(iv) In case
of death of the payout holder after superannuation, family payout @60% of the
payout admissible to the payout holder, immediately before his demise, will be
assured to the legally wedded spouse (spouse legally wedded as on the date of
superannuation or on the date of voluntary retirement or retirement under FR
56(j), as may be applicable).
(v) Dearness
Relief will be available on the assured payout and family payout, as the case
may be. The Dearness Relief will be worked out in the same manner as Dearness
Allowance applicable to serving employees. Dearness Relief will be payable only
when payout commences.
(vi) A lump
sum payment will be allowed on superannuation @10% of monthly emoluments (basic
pay + Dearness Allowance) for every completed six months of qualifying service.
This lump sum payment will not affect the quantum of assured payout.
(vii) The
corpus under the Unified Pension Scheme option will comprise of two funds,
namely:-
(a) An
individual corpus with employee contribution and matching Central Government
contribution; and
(b) A pool
corpus with additional Central Government contribution.
(viii) The
contribution of employees will be 10% of (basic pay + Dearness Allowance). The
matching Central Government contribution will also be 10% of (basic pay +
Dearness Allowance). Both will be credited to each employee’s individual
corpus.
(ix) Central
Government shall provide an additional contribution of an estimated 8.5% of
(basic pay + Dearness Allowance) of all employees who have chosen the Unified
Pension Scheme option, to the pool corpus on an aggregate basis. The additional
contribution is for supporting assured payouts under the Unified Pension Scheme
option.
(x) The
employee can exercise investment choices for the individual corpus alone. Such
investment choices shall be regulated by the Pension Fund Regulatory and
Development Authority. A ‘default pattern’ of investment may be defined by
Pension Fund Regulatory and Development Authority from time to time. If an
employee does not exercise an investment choice on individual corpus, the
‘default pattern’ of investment will apply.
(xi) The
investment decisions for the pool corpus built through the additional Central
Government contribution will solely rest with Central Government.
(xii) In
respect of employees who have retired before the date of operation of Unified
Pension Scheme and who opt for the Unified Pension Scheme option, Pension Fund
Regulatory and Development Authority will determine the mechanism for making
available the top- up amount.
Explanation: For the purpose of this notification basic pay
includes non-practicing allowance granted to medical officer in lieu of private
practice.
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3. The
existing Central Government Employees under National Pension System, on the
effective date of operationalisation of the Unified Pension Scheme option, as
well as the future employees of Central Government can choose to either take
the Unified Pension Scheme option under the National Pension System or continue
with the National Pension System without the Unified Pension Scheme option. In
case an employee chooses the Unified Pension Scheme option, all its
stipulations and conditions shall be deemed to
have been opted for and such option once exercised, shall be
final.
4. Once an
employee covered under National Pension System, who is in service on the
effective date of operationalisation of the Unified Pension Scheme option,
exercises the Unified Pension Scheme option, the outstanding National Pension
System corpus in the employees Permanent Retirement Account Number shall be
transferred to the employee’s individual corpus under the Unified Pension
Scheme.
5. For each
employee covered under National Pension System who has exercised the Unified
Pension Scheme option, a ‘benchmark corpus’ value shall be computed, in such
manner as may be determined by the Pension Fund Regulatory and Development
Authority, with the following assumptions, namely: -
(i) regular
receipt of applicable contributions for both the employees and the employer for
each month of qualifying service;
(ii) in case
of missing contributions, an appropriate value, to be determined by the Pension
Fund Regulatory and Development Authority, shall be assigned; and
(iii) investment
of such contributions is made as per the ‘default pattern’ of investment, as
defined by the Pension Fund Regulatory and Development Authority.
6. The value
or units in the individual corpus with investment choices of the employee shall
be informed to such employee on a periodic basis. Alongside, the value or units
of the benchmark corpus corresponding to the employee, computed as per para 5
above will also be informed to the employee.
7. At
superannuation or retirement, the qualifying service of the employee under the
Unified Pension Scheme option, will be determined by the Head of Office, where
he is employed.
8. At
superannuation or retirement, the employee under Unified Pension Scheme shall
authorise transfer of the value or units in the individual corpus to the pool
corpus, equivalent to the value or units of the benchmark corpus for
authorisation of Assured Payout. In case the value or units of individual
corpus is less than value or units of the benchmark corpus, the employee will
have an option to arrange for additional contribution to meet this gap. In case
the value or units of individual corpus is more than the value or units of the
benchmark corpus, the employee shall authorise transfer of value or units
equivalent to the benchmark corpus and the balance amount in the individual
corpus will be credited to the employee.
9. In case
the values or units transferred by the employee from the individual corpus to
the pool corpus, is less than the value or units of the benchmark corpus,
payout proportionate to the assured payout shall be authorised.
10. The Unified
Pension Scheme, being a ‘fund-based’ pension system, relies on the regular and
timely accumulation and investment of applicable contributions (from both the
employee and the employer) for Assured Payout to the employees.
11. For the
sake of clarity, it is made clear that any employee who has exercised the
Unified Pension Scheme option under National Pension System under this
notification, shall not be entitled for and cannot claim, any other policy
concession, policy change, financial benefit, any parity with subsequent
retirees etc. later including post- retirement.
12. The
provisions of Unified Pension Scheme will also be applicable, mutatis mutandis
to past retirees of National Pension System, who have superannuated before the
date of operationalising of Unified Pension Scheme. Such superannuated
employees will be paid arrears for the past period along with interest as per
Public Provident Fund rates. The monthly top-up amount for such superannuated
employees, to be determined by the Pension Fund Regulatory and Development
Authority, will be paid after adjusting the withdrawals made by, and annuities
paid to, them.
13. The
provisions regarding assured payout under the Unified Pension Scheme option for
employees facing disciplinary proceedings at the time of superannuation or
where disciplinary proceedings are contemplated post- retirement, shall be
separately notified.
14. Illustrative
examples as to working of payouts of Unified Pension Scheme under different
scenarios are given in the Annexure.
15. Pension
Fund Regulatory and Development Authority may issue regulations for
operationalising Unified Pension Scheme.
16. The
effective date for operationalisation of the Unified Pension Scheme shall be
1st April, 2025.
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