The Integrated Pension Scheme for Central Government Employees will be launched on April 1, 2025. A minimum monthly pension of ₹10,000 is guaranteed and the government contribution will increase to 18.5%.

The Government of India has announced that it will launch the Integrated Pension Scheme on April 1, 2025, to provide financial security to Central Government Employees after retirement. The scheme guarantees a minimum monthly pension of ₹10,000, which ensures a stable income after service. This will address concerns about unpredictable income. Employees with at least 25 years of service will receive 50% of their last basic salary as pension.

At the same time, those between 10 and 25 years will receive a proportionate amount. The key feature of this scheme is the increase in government participation. Employees will continue to contribute 10% of their basic salary and dearness allowance. At the same time, the government’s share will increase from 14% to 18.5%. A separate pooled fund will be created with an additional 8.5% government contribution to ensure stable pension disbursements.

This measure will balance financial responsibility with securing the financial future of employees. The scheme will also be applicable to former pensioners who retired under the National Pension System. This will ensure that they receive benefits under the new system. The change aims to provide greater stability and protection from market fluctuations.

The government has allocated about ₹6,250 crore in the financial year 2024-25 to implement the scheme. As per tax rules, pensions beyond a certain threshold will be monitored, which will ensure transparency. Retirees may be required to submit PAN details or replacement forms. Keeping financial records up-to-date will ensure a smooth retirement process.

The new pension scheme is a major step in providing financial security to retired government employees. With a guaranteed monthly income and increased government support, the scheme will provide a stable and predictable retirement. This will benefit thousands of people across the country.