Unified Pension Scheme Approved By Cabinet
- By Thetripurapost Desk, Delhi
- Aug 24, 2024
- 380
The central government has taken a big decision regarding pension on Saturday.
The cabinet led by Prime Minister Narendra Modi has approved the Unified Pension Scheme (UPS) for government employees. Now the Unified Pension Scheme will be started in place of the old and new. According to this, after at least 25 years of service, 50 percent of the basic payment will be available under UPS, that is, this amount will be given as pension.
At the same time, after 10 years of service, at least Rs 10,000 will be available as pension. This information about the cabinet decisions was given by Railway Minister Ashwini Vaishnaw .
Vaishnaw said that 23 lakh central government employees will benefit from this new pension scheme. This scheme will come into effect from April 1, 2025.
Central government employees will be given the option to choose either National Pension System (NPS) or UPS. Existing central government NPS subscribers will also be given the option to switch to UPS. Let us tell you that in March this year, the government had constituted a committee to reform NPS under the chairmanship of the then Finance Secretary TV Somanathan. This committee had studied many pension schemes of the country and the world.
After this announcement, Prime Minister Narendra Modi posted on Instagram and expressed pride in government employees. He said, 'We are proud of all government employees who work hard for the progress of the country. Unified Pension Scheme (UPS) will ensure dignity and financial security of these employees. This step reflects our government's commitment to their welfare and secure future.
Some of the main features of this scheme are as follows:
Those who have worked for at least 25 years will be given 50 per cent of the average basic salary received in the last 12 months before retirement as pension.
Only those who work for at least 10 years will be entitled to this pension.
If someone leaves the job after 10 years of service, he will get at least Rs 10,000 as pension.
In case of death of the employee, 60 percent of his pension amount will be given to the family.
Apart from gratuity, a lump sum payment will also be made on retirement.
You will also get the benefit of inflation indexation.
Employees will not be required to make any contribution. The government will bear 18.5% of the employee's basic salary on its own.
For every six months of service, one-tenth of the monthly salary (salary + DA) will be added and paid on retirement.
Currently, employees have to contribute 10% of their basic salary to the National Pension System (NPS) for pension. The government contributes 14% of this amount. Now, employees will not have to make any contribution to UPS. The government will contribute 18.5% of the employee's basic salary.
The issue of employees' pension was dominating the Lok Sabha elections. Many employees were demanding restoration of the old pension (OPS). Leader of opposition in Lok Sabha Rahul Gandhi also raised the pension issue. Employee organizations had also written a letter to Prime Minister Modi in February regarding restoration of OPS. In the letter, it was demanded that the government stop NPS and implement Guaranteed Old Pension Scheme. The organizations had said that if their demands were not met, they would go on strike from May 1.
However, after talks and assurances from the government, the strike was postponed