The Central Government has introduced a scheme to provide financial security to all employees and empower them to avoid financial difficulties after retirement.
The National Pension System, as an alternative, offers a significant degree of flexibility, allowing those currently in the NPS to shift to the new scheme.
One of the benefits of the new scheme is that employees with 25 years of service will receive a definite pension based on 50% of their basic pay from the 12 months before retirement.
Additionally, if a pensioner with ten years of service passes away, 60% of the pension will be given to the family. The minimum pension after ten years of service has been set at Rs. 10,000.
The new scheme will take effect on April 1, 2025, and apply to all retirees on or before March 31, 2025. To be eligible for the scheme, 25 years of service must be completed.
Retired government employees under the Old Pension Scheme receive half of their last salary as a monthly pension, increasing with each rise in DA.