India

Union Cabinet Approves Unified Pension Scheme for Government Employees

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.

 

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.”

Also Read: Caste Census Essential for 90% Not in System: Rahul Gandhi In Prayagraj

Ajaypal Choudhary

Recent Posts

Mallikarjun Kharge Slams ‘Batenge Toh Katenge’ Slogan During Jharkhand Campaign

Kharge emphasized that the BJP leaders promote divisive rhetoric as part of their agenda. He…

50 mins ago

Police Arrest Two In Fake Marriage Certificate Racket In Name Of Arya Samaj

DCP Nagar Abhishek Bharti revealed that five couples, including Shivani and Shrikant Yadav, recently filed…

1 hour ago

India And Nigeria Strengthen Counter-Terrorism Cooperation In Second Strategic Dialogue

Doval and Ribadu held detailed talks on challenges linked to terrorism and radicalization, including those…

2 hours ago

Ola Electric’s Share Hits All-Time Low Of Rs 74 Ahead Of Q2 Results

Analysts predict that the stock could drop closer to the Rs 70 mark. Ola Electric…

3 hours ago

US Election: Voting Begins With First Ballots Cast In New Hampshire

This election is one of the most divisive in US history. Harris and Trump have…

3 hours ago

Waqf Bill: Opposition MPs Meet LS Speaker, Lodge Protest Against JPC Chairman Jagdambika Pal

Opposition members alleged that Pal calls JPC meetings without consulting them and restricts their opportunity…

3 hours ago