The Central Government has taken a significant decision providing substantial relief to its employees. All government employees covered under the Unified Pension Scheme (UPS) will now be eligible for retirement and death gratuity benefits under the Old Pension Scheme (OPS).
New Delhi: The Central Government has made a landmark decision, announcing that all employees covered under the Unified Pension Scheme (UPS) will receive retirement and death gratuity benefits similar to those provided under the Old Pension Scheme (OPS). This decision fulfills a long-standing demand of government employees and is considered a major step towards enhancing social security.
This change will apply to all central government employees covered under the Unified Pension Scheme (UPS), implemented from April 1, 2025. The government has clarified that employees previously under the NPS will now receive benefits similar to those under the OPS, thus eliminating pension-related disparities.
Employees' Demand Honored
Minister of State for Personnel, Jitendra Singh, announced this decision at a press conference on Wednesday, stating that the government has addressed a major demand of its employees. This will ensure parity in retirement benefits among employees under NPS, OPS, and now UPS. He emphasized that this decision reflects the government's commitment to social security.
What is the Unified Pension Scheme?
UPS is a new pension model implemented by the Central Government from April 2025. This scheme is based on the NPS framework but incorporates several key benefits of the Old Pension Scheme. The aim is to provide government employees with stable, reliable, and guaranteed pension security.
Gratuity Now Ensured
The Department of Pension and Pensioners' Welfare (DOPPW), under the Ministry of Personnel, Public Grievances and Pensions, issued a notification clarifying that employees under UPS will receive retirement and death gratuity benefits as per the Central Civil Services (Gratuity payable under National Pension System) Rules, 2021. This benefit was previously available only to OPS employees.
According to this decision, if an employee dies or becomes incapacitated during service, their dependents will receive gratuity benefits under the OPS. This will not only provide financial security to the family but also offer peace of mind to the employees.
A Step Towards Equality and Transparency
DOPPW Secretary V. Srinivas stated that this order clarifies that in case of death, disablement, or incapacity during service, the employee will have the option of receiving benefits under the OPS. This reflects a progressive and humane approach. Furthermore, this order allows for gratuity payments up to ₹25 lakh, eliminating the disparity between NPS and UPS employees.
Wave of Joy Among Employees
Manjit Singh Patel, President of the All India NPS Employees Federation, lauded the government's move, calling it a historic decision. He stated that employees had been demanding OPS-like gratuity benefits for years. This amendment has now cleared up any confusion surrounding the UPS.
Patel also added that this decision will encourage more employees to adopt the Unified Pension Scheme, knowing they will receive similar social and financial security to that provided under the OPS.
Bridging the Gap Between NPS and OPS
A notification issued by the Ministry of Finance on January 24th stated that the Unified Pension Scheme would be implemented for new central government recruitments from April 1, 2025. Employees were also given the option to choose between NPS or OPS.
Now, according to the new DOPPW order, NPS and UPS employees will receive equal benefits in case of retirement or death during service. This will resolve the long-standing disparity.
Administrative Reforms and Better Governance
The Ministry of Personnel has implemented several key reforms over the past 11 years, including e-governance, digital filing, timely promotions, and resolution of employee grievances. Minister Jitendra Singh also stated that the ministry has taken numerous steps to make governance more humane, simpler, and transparent. This new decision is another significant step in that direction.
