Unified Pension Scheme: In a major resolution impacting lakhs of staff, the Bharatiya Janata Occasion (BJP)-led central authorities in the present day (August 24) authorized the Unified Pension Scheme (UPS) which gives for Assured Pension and Assured Household Pension.
Briefing the media after a gathering of the union cupboard, Data and Broadcasting Minister Ashwini Vaishnaw mentioned about 23 lakh staff of the central authorities would profit from the Unified Pension Scheme (UPS).
The cupboard assembly was chaired by Prime Minister Narendra Modi. The staff may have the selection to proceed with the Nationwide Pension Scheme or UPS.
“As we speak the Union Cupboard has authorized the Unified Pension Scheme (UPS) for presidency staff offering for the assured pension. 50 per cent assured pension is the primary pillar of the scheme, second pillar shall be assured household pension. About 23 lakh staff of the central authorities would profit from the Unified Pension Scheme (UPS). There shall be an choice for the workers to decide between NPS and UPS,” he mentioned.
Key options of the Unified Pension Scheme
1. Assured Pension
- 50 per cent of the common primary pay drawn over the past 12 months previous to superannuation for a minimal qualifying service of 25 years.
- Proportionate for lesser service interval upto a minimal of 10 years of service.
2. Assured Household Pension
- 60 per cent of pension of the worker instantly earlier than her or his demise.
3. Assured Minimal Pension
- 10,000 monthly on superannuation after a minimal of 10 years of service.
4. Inflation Indexation
- On assured pension, on assured household pension and warranted minimal pension.
- Dearness Reduction primarily based on All India Client Value Index for Industrial Staff (AICPI-IW) as in case of serving staff.
5. Lump-Sum cost at superannuation along with gratuity.
- 1/tenth of month-to-month emolument (pay + DA) as on the date of superannuation for each accomplished six months of service.
- This cost is not going to cut back the quantum of assured pension.
Different salient options of UPS
- Provisions of UPS will apply to previous retirees of NPS (who’ve already superannuated).
- Arrears for the previous interval shall be paid with curiosity at PPF charges.
- UPS shall be accessible as an choice to the workers. Current in addition to future staff may have the choice of becoming a member of NPS or UPS. Selection, as soon as exercised, shall be last.
- Worker contribution is not going to enhance. The federal government will present extra contributions for implementing UPS.
- Authorities contribution elevated from 14 per cent to 18.5 per cent
Implementation of UPS
- UPS to be given impact from April 1, 2025
- Assist mechanism and essential authorized, regulatory and accounting modifications shall be readied.
- UPS is being applied by the Central Authorities Benefiting 23 lakh Central Authorities staff.
- The identical structure has been designed for adoption by State governments.
- If additionally adopted by State governments it will possibly profit over 90 lakh authorities staff who’re presently on NPS.
