New Delhi:In a significant move, the central government on Saturday approved the Unified Pension Scheme (UPS) for central government employees, a decision expected to benefit 23 lakh workers. The UPS is designed to provide financial security and stability for government employees post-retirement, with a range of features that cater to the diverse needs of retirees and their families.
**Key Features of the Unified Pension Scheme (UPS):**
1. Assured Pension:
Employees with a minimum of 25 years of service will receive an assured pension equivalent to 50% of their average basic pay over the last 12 months before retirement. For those with less than 25 years of service, the pension will be proportionate to their tenure, with a minimum qualifying service period of 10 years.
2. **Assured Family Pension:**
In the event of an employee’s death, their spouse will receive a family pension equal to 60% of the pension that the employee was receiving before their demise.
3. Assured Minimum Pension:
Employees with at least 10 years of service are guaranteed a minimum pension of ₹10,000 per month upon retirement.
4. Inflation Indexation:
Both the assured pension and the family pension will be subject to inflation indexation, ensuring that the pension amounts keep pace with the rising cost of living.
5. Dearness Relief:
Retirees under the UPS will receive Dearness Relief similar to serving employees, based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
6. lump Sum Payment on Superannuation:
In addition to gratuity, employees will receive a lump sum payment at the time of superannuation. This payment will be 1/10th of the employee’s monthly emoluments (including pay and Dearness Allowance) as on the date of retirement, for every completed six months of service. This payment will not reduce the assured pension.
Prime Minister Narendra Modi expressed pride in the contributions of government employees, stating, “The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future.”
The UPS is expected to immediately benefit 23 lakh central government employees. This number could potentially rise to 90 lakh if state governments choose to join the scheme, extending its benefits to a broader pool of government employees across India.
The announcement comes in the context of several non-BJP states deciding to revert to the DA-linked Old Pension Scheme (OPS) and demands from employee organizations in other states for similar measures.
The National Pension Scheme (NPS) has been in place for all government employees, except those in the armed forces, who joined the central government on or after January 1, 2004. Most state and Union Territory governments have also implemented the NPS for their new employees.
Under the OPS, retired government employees received 50% of their last drawn salary as a monthly pension, with the amount increasing in line with DA hikes. However, the OPS is seen as fiscally unsustainable due to its non-contributory nature, placing a growing burden on the exchequer.
It is a good news for central government employees