Cabinet reverts to assured pension with Unified Pension Scheme
Image credit Special Arrangement
Cabinet nod for 50 pc assured pension in new scheme
By Our Special Correspondent
New Delhi, August 24: The Union Cabinet in its meeting on Saturday gave its nod to Unified Pension Scheme (UPS). The government has reverted back to the assured pension scheme.
The UPS entails 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. The UPS also provides for proportionate pension payout for lesser service period up to a minimum of 10 years of service.
Also Read: Assam rape accused drowns while communal cauldron simmers
For Assured Family Pension, the UPS provides for 60 per cent of pension of the employee immediately before her/his demise. The UPS also provides for an Assured Minimum Pension under which ₹10000 per month on superannuation after minimum 10 years of service will be paid.
Union Minister for Information and Broadcasting Ashwini Vaishnaw in the media briefing over the Cabinet decisions said that assured family pension and assured minimum pension will also carry the component of Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of serving employees.
The Cabinet approval for the UPS also provides for “Lump-Sum payment at superannuation in addition to gratuity; 1/10th of monthly emolument (pay + DA) as on the date of superannuation for every completed six months of service; and this payment will not reduce the quantum of assured pension”.
Also Read: Modi makes loud global statement with Ukraine visit
“Provisions of UPS will apply to past retirees of NPS (who have already superannuated). Arrears for past period will be paid with interest @PPF rates,” added Vaishnaw in his presentation on the UPS before the media.
The UPS will be available as an option to the employees. “Existing as well as future employees will have an option of joining NPS or UPS. Choice, once exercised, will be final,” added the presentation on the UPS.
The UPS will be given effect from April 1, 2025. “Support mechanism and necessary legal, regulatory and accounting changes will be readied. The UPS is being implemented by the Central Government and it will benefit 23 lakh Central Government employees,” added the presentation made by Vaishnaw.
Also Read: Prashant Kishor boards 90s’ club for poll swing
He said that the “same architecture has been designed for adoption by State Governments. If also adopted by State Governments, the UPS can benefit over 90 lakh Government employees who are presently on NPS”.
The government has said that the “employee contribution will not increase. Government will provide additional contribution for implementing UPS. The Government contribution will increase from 14 to 18.5 per cent”.
Join WhatsApp channel of The Raisina Hills
About The Author
