Union Minister Ashwini Vaishnav said, “Government employees have demanded some changes in the new pension schemes. For this, PM Modi had formed a committee headed by Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organizations and almost all the states.
The BJP-led central government on Saturday launched the Unified Pension Scheme (UPS). This will give the central government employees the freedom to decide whether they want to remain in the National Pension Scheme (NPS) or join the Unified Pension Scheme. Similarly, state governments will have the right to decide whether to adopt this new module of UPS. UPS will be implemented from April 1, 2025. The cost of implementing the scheme in the first year will be Rs 6250 crore. UPS will be applicable to all people retiring under NPS since 2004.
Union Minister Ashwini Vaishnav said, “Government employees have demanded some changes in the new pension schemes. For this, PM Modi had formed a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organizations and almost all the states.”
The minister said, “There is a difference in how PM Modi works and how the opposition works. Unlike the opposition, PM Modi believes in having extensive consultations. After detailed consultations with everyone, including the Reserve Bank of India and the World Bank, the committee has recommended a unified framework. Today, the Union Cabinet has approved this unified framework, and it will be implemented in the future.”
Key points of UPS:
Assured pension: Government employees who have completed minimum 25 years of UPS service will get 50% of their basic pay for the last 12 months before retirement as pension.
Assured family pension: 60% of the employee’s pension will be given just before his death.
Minimum pension: After minimum 10 years of service, a pension of Rs 10,000 will be given every month on retirement.
Five pillars of UPS
The minister said, “Today the Union Cabinet has approved the Unified Pension Scheme (UPS) for government employees providing assured pension… 50% assured pension is the first pillar of the scheme… The second pillar will be assured family pension. Around 23 lakh central government employees will benefit from the Unified Pension Scheme (UPS). Employees can choose any one of the schemes from NPS and UPS.”
Explaining the provisions of the scheme, Vaishnav said, “There are five pillars of the Unified Pension Scheme. Government employees wanted an assured pension amount, which was really necessary. Thus, 50 per cent assured pension is the first pillar of UPS. This amount will be the average of the basic pay of 12 months before retirement. If someone has worked for 25 years, then that person will get this fixed pension.”
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