Unified Pension Scheme: In a major growth for presidency staff, the Union Cupboard on Saturday accepted the Unified Pension Scheme (UPS), providing an assured 50 per cent of the wage as pension for 23 lakh authorities staff who joined service underneath the Nationwide Pension System (NPS). This scheme shall be relevant from 1 April 2025, marking a major shift within the pension construction for central authorities staff.
Saying the Cupboard’s resolution, Union Minister for Info and Broadcasting Ashwini Vaishnaw highlighted the important thing options of the UPS, stating, “Authorities staff will now be eligible to obtain 50 per cent of the common primary pay drawn over the past 12 months earlier than superannuation as pension. For this full pension, the eligibility service size shall be 25 years, with proportionate advantages for a service interval of as much as a minimal of 10 years.”
VIDEO | “The Unified Pension Scheme has 5 pillars. The (authorities) staff needed an assured quantity, which was a logical requirement. Thus, 50 per cent assured pension is the primary pillar of the UPS. This quantity would be the common of primary pay of 12 months earlier than… pic.twitter.com/gKTlZCBOc2
— Press Belief of India (@PTI_News) August 24, 2024
The Nationwide Pension System (NPS), which was launched for presidency staff becoming a member of after 1 April 2004, relies on the precept of contribution relatively than the outlined profit scheme that was relevant to staff underneath the Previous Pension Scheme (OPS). The brand new UPS will enable NPS subscribers the choice to change to this assured pension scheme ranging from the following monetary 12 months.
The approval of the UPS follows suggestions from a committee arrange by the finance ministry underneath Finance Secretary T.V. Somanathan, which was tasked with reviewing the pension scheme for presidency staff. The committee was established in response to calls for for reforms within the pension construction, particularly contemplating a number of non-BJP-ruled states have reverted to the OPS, which is linked to dearness allowance.
Unified Pension Scheme’s Salient Options
- The UPS will supply a minimal pension of ₹10,000 monthly after a minimal of 10 years of service. “This pay is to be proportionate for lesser service interval as much as a minimal of 10 years of service,” a statement knowledgeable.
- Assured household pension at 60 per cent of the worker’s pension.
- The scheme consists of inflation indexation primarily based on the All India Shopper Value Index for Industrial Staff (AICPI-IW), guaranteeing that pensions and household pensions are adjusted for inflation.
- Retirees may also obtain a lump sum cost at superannuation.
- Gratuity, equal to one-tenth of month-to-month emoluments (pay + DA) for each accomplished six months of service.
Prime Minister Narendra Modi expressed his assist for the brand new scheme on X, stating, “We’re happy with the arduous work of all authorities staff who contribute considerably to nationwide progress. The Unified Pension Scheme ensures dignity and monetary safety for presidency staff, aligning with our dedication to their well-being and a safe future.”
We’re happy with the arduous work of all authorities staff who contribute considerably to nationwide progress. The Unified Pension Scheme ensures dignity and monetary safety for presidency staff, aligning with our dedication to their well-being and a safe future.…
— Narendra Modi (@narendramodi) August 24, 2024
Cupboard Secretary-designate T.V. Somanathan confirmed that the advantages of the UPS are relevant to these retiring by 31 March 2025, with arrears being supplied.