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Centre Reintroduces Unified Pension Scheme; Opposition Reacts

The revised scheme will provide an assured pension of 50 per cent of the last withdrawn salary considering the basic pay of 12 months.

UPS Edited by Updated: Aug 25, 2024, 4:26 pm
Centre Reintroduces Unified Pension Scheme; Opposition Reacts

The UPS may ensure a guaranteed pension for 23 lakh central government employees.

Major changes to the pension were announced by the Union Cabinet on Saturday reintroducing the concept of assured pension which was discontinued for the new joiners many years ago. The  Unified Pension Scheme (UPS) will come into effect from April 1, 2025, which carries similar features to the Old Pension Scheme (OPS). The revised scheme will provide an assured pension of 50 per cent of the last withdrawn salary considering the basic pay of 12 months, with a retirement benefit for all employees who complete 25 years of service.

In addition to their retirement benefits, employees will receive deferred compensation that is fully indexed to inflation, ensuring its value keeps pace with rising costs and the pensioner’s spouse will be entitled to a guaranteed payout of 50% of the last drawn pension after the pensioner’s passing.

Also, read| Union Cabinet Approves Unified Pension Scheme (UPS): 5 Important Points

This may ensure a guaranteed pension for 23 lakh central government employees. Prime Minister Narendra Modi and Union Home Minister Amit Shah have praised the scheme, highlighting its significance for government employees’ financial security and well-being.

Unified Pension Scheme: 10 points

  • 50% of average basic pay for the last 12 months for retirees with 25 years of service, proportionate for less.
  • Increased from 14% to 18.5%, no change in employee contribution.
  • 60% of the pension for the family if the pensioner passes away.
  • Minimum Pension: Rs 10,000 per month after a minimum of 10 years of service.
  • Pensions linked to inflation via AICPI-IW.
  • Additional lump-sum at retirement, not affecting assured pension.
  • Applies to past NPS retirees with arrears paid with PPF interest.
  • Existing NPS/VRS employees and future employees can opt for UPS, with a one-time final choice
  • Potentially benefits 90 lakh employees if adopted by the state government

Shiv Gopal Mishra, Secretary of the Joint Consultative Machinery (JCM), hailed the meeting with Prime Minister Narendra Modi as a “proud moment” for 32 lakh government employees it was the first time JCM was invited by the PM to discuss the Unified Pension Scheme.

On the contrary, Mallikarjun Kharge the president of the Indian National Congress, slammed the government saying that the‘U’ in UPS stands for the Modi  Govt’s U-turns and that his party is indirectly getting benefitted by paying his employees in the name of such schemes.

Topics
Central Government Pension Scheme pm modi UPS

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