Family pension is an important scheme providing financial security to government employees and their families. Recently, the Central Government has made major changes in the Family Pension and Unified Pension Scheme (UPS), which have come into force from 1 April 2025. The purpose of these changes is to improve the lifestyle of pensioners and provide more financial stability to their families.
In this article, we will discuss in detail the new rules of Family Pension and UPS, their characteristics, eligibility criteria, and benefits. Also, we will understand how pensioners will benefit from these schemes.
What is a family pension?
Family pension is the financial assistance that is given to his family after the death of a government employee. This pension is provided to his family during the service of the employee or after his death after retirement.
Chief Rules of Family Pension
- Family pension is 30% of the employee’s basic salary.
- The minimum pension amount has been fixed at ₹ 3500 per month.
- If the employee dies during the service period, his widow/widow or children get this benefit.
- Children are given benefits according to their age. If children are under 25 years of age, they are given pension.
- Even after remarriage, the widow can get pension, provided her income is less than the family pension.
Introduction to Unified Pension Scheme (UPS)
Unified Pension Scheme (UPS) is a new scheme launched by the Central Government which has been implemented since 1 April 2025. The UPS has arranged a fixed monthly pension for government employees by replacing the old NPS (National Pension System).
The main rules and features of UPS
| Speciality | Description |
| Name of the scheme | Unified Pension Scheme (UPS) |
| Date of implementation | 1 April 2025 |
| Minimum monthly pension | ₹ 10,000 |
| Guaranteed family pension | 60% of the last salary |
| service period | At least 10 years |
| Full pension | 50% of the average salary of final 12 months (on 25 years service) |
| Inflation relief | Based on All India Consumer Price Index |
| Employer contribution | 18.5% of basic salary |
Changes in family pension
The government has made several reforms in family pension so that the beneficiaries can get more financial assistance.
Main change
- Family Security:
- After the death of the employee, his family will get 60% of his final salary.
- This amount is more than before and will make the family financially stable.
- Minimum monthly amount:
- The minimum monthly family pension under UPS has been fixed at ₹ 10,000.
- Inflation relief:
- The dearness allowance has been increased to 50% to face the rising costs.
- Eligibility Criteria:
- Age limit for children has been increased; Now they can get benefits up to 25 years.
- Divyang children will get family pension up to 75% life throughout their lives.
Difference between UPS and NPS
Unified Pension Scheme (UPS) has changed the National Pension System (NPS). UPS provides more certainty and security.
Specialty | UPS | NPS |
, ,
Guaranteed Monthly amount | ₹ 10,000 minimum | Market based |
Employer Contribution | 18.5% of Basic Salary | 14% of basic salary |
Family Pension | 60% of the final salary | No guarantee.
Inflation relief | Applicable Not applicable
How to apply?
The application process has been made simple and digital to avail UPS and family pension schemes.
Application process:
- Online application:
- You can fill the form by visiting the Protean Cra portal.
- Offline application:
- Go to the nearest district administration office and apply.
Necessary documents:
- Aadhar card
- Bank account statement
- Income certificate
- Disability Certificate (for Divyang)
Benefits and challenges
Benefits of UPS and family pension schemes:
- Ensured income after retirement.
- Family safety ensured.
- Help in facing rising costs due to inflation relief.
- Transparency by digital payment system.
Challenges:
- Private sector employees have not been included in the scheme.
- The application process for some beneficiaries can be technically challenging.
conclusion
Changes in Family Pension and Unified Pension Scheme (UPS) are a major step for government employees and their families. These schemes not only provide financial security but also ensure family stability.
Disclaimer: All information related to UPS and family pension schemes is based on government notifications. The beneficiaries are advised to make a thorough examination of eligibility criteria and rules before applying.
