New Delhi, Aug 24: The Union Cabinet, led by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS) for government employees on Saturday. The scheme guarantees a minimum pension and a family pension.
Around 23 lakh Central government employees will benefit from this scheme. They will now have the choice between the New Pension Scheme (NPS) and the Unified Pension Scheme.
State governments can also opt for the UPS. If they do, the number of beneficiaries could rise to 90 lakh. The government estimates that arrear expenses will be Rs 800 crore. The annual cost increase will be around Rs 6,250 crore in the first year.
The scheme will take effect from April 1, 2025.
Existing NPS subscribers in the Central government will have the option to switch to the UPS.
Earlier in the Day Prime Minister Narendra Modi met with delegation of staff side of Joint Consultative Machinery for Central Government employees.
Key Features of the Unified Pension Scheme:
– Guaranteed pension of 50% of the average basic pay drawn in the last 12 months before retirement, with a minimum qualifying service of 25 years.
– Proportionate pension for service less than 25 years but at least 10 years.
– Assured family pension at 60% of the employee’s pension before their demise.
– Minimum pension guaranteed at Rs 10,000 per month for retirees with at least 10 years of service.
After the Cabinet meeting, Union Minister Ashwini Vaishnaw briefed journalists. He said the Centre had formed a committee that held 100 meetings with organizations like the RBI and the World Bank.
The Cabinet approved the UPS based on this committee’s recommendations.
“The Union Cabinet has approved the Unified Pension Scheme (UPS) for government employees. It offers an assured pension of 50% as the first pillar, with the second pillar being a guaranteed family pension,” explained Vaishnaw.
देश की प्रगति के लिए कठिन परिश्रम करने वाले सभी सरकारी कर्मचारियों पर हमें गर्व है। यूनिफाइड पेंशन स्कीम (UPS) इन कर्मचारियों की गरिमा और आर्थिक सुरक्षा को सुनिश्चित करने वाली है। यह कदम उनके कल्याण और सुरक्षित भविष्य के लिए हमारी सरकार की प्रतिबद्धता को दर्शाता है।…
— Narendra Modi (@narendramodi) August 24, 2024
Regarding the preparation, he said, “Government employees requested changes in the New Pension Scheme. In response, PM Modi formed a committee under Cabinet Secretary T.V. Somanathan. The committee conducted over 100 meetings with various organizations and almost all states. The UPS was designed based on their feedback.”
Vaishnaw added, “PM Modi’s approach is different from the opposition’s. While the opposition avoids consultations, PM Modi insists on thorough discussions.”
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