The Union Cabinet recently approved the Unified Pension Scheme (UPS), ensuring central government employees receive 50% of their average salary from the last 12 months as a pension. This move, however, was met with criticism from the opposition, particularly the Indian National Congress. Mallikarjun Kharge, Leader of the Opposition in Rajya Sabha, took a swipe at the government, stating that the “U” in UPS stands for “U-turns,” referencing the government’s frequent policy reversals. He cited several instances, including rollbacks on budget provisions, the Waqf Bill, the Broadcast Bill, and the Lateral Entry scheme, accusing the government of yielding to public pressure after June 4.
Despite the opposition’s criticism, some within the Congress, such as Praveen Chakravarty, welcomed the UPS. Chakravarty, who chairs the All India Professionals’ Congress, praised the scheme for adding a minimum guarantee to the Old Pension Scheme (OPS). He highlighted that while OPS was reformed to the National Pension Scheme (NPS) in 2013, NPS lacked an assured minimum amount for retirees. Chakravarty described UPS as a prudent move that combines NPS with a minimum guarantee, ensuring better security for retired employees.
The UPS, set to take effect on April 1, 2025, will benefit 23 lakh employees who have completed 25 years of service. Key features of the scheme include a guaranteed minimum pension of Rs 10,000 per month after 10 years of service, family pensions at 60% of the employee’s pension income upon their death, inflation indexation to adjust for price rises, and a lump sum withdrawal option at retirement. The new scheme replaces the NPS, which was based on contributions from both employees and the government, unlike the OPS, which provided 50% of the last drawn salary as a pension, with increases tied to DA rates. Several non-BJP states have reverted to the OPS, while employee organizations in other states are advocating for the same.
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