BUSINESS-ECONOMY
Union Minister Ashwini Vaishnaw announced the details of the scheme and added that a committee constituted by the Centre held 100 meetings with several top organisations, including RBI and World Bank, to take a call on the scheme that will benefit 23 lakh central government employees. He said that the government employees will have a choice to make between the New Pension Scheme and UPS. In a major decision that will ensure 50 per cent of the salary as pension for 23 lakh central government employees, the Union Cabinet, headed by PM Narendra Modi, approved the Unified Pension Scheme (UPS) on Saturday. This scheme shall come into force from April 1, 2025. Central government employees will have to opt either for the National Pension Scheme or the Unified Pension Scheme. Further, existing subscribers of the National Pension Scheme under the central government would also be provided an option to switch over to the Unified Pension Scheme. State governments would also have the option to adopt the Unified Pension Scheme. Everything you need to know: Assured Pension: 50 per cent of the average basic pay drawn during the last 12 months prior to superannuation, in case the individual has rendered qualifying service of 25 years or more. Proportionate for lesser service up to a minimum of 10 years of service Ensured Family Pension @60 per cent of the pension of the employee immediately before her/his demise. Assured Minimum Pension @10000 per month on superannuation after a minimum of 10 years of service. Inflation Indexation: On assured pension, on assured family pension, and assured minimum pension, dearness relief based upon All India Consumer Price Index for Industrial Workers (AICPIW) as in the case of serving employees Lump sum payment on superannuation, besides gratuity. 1/10th of emoluments for each completed six-month period of service reckoned from the date of superannuation. The payment shall not reduce the quantum of pension guaranteed. Union Minister Ashwini Vaishnaw announced the details of the scheme and added that a committee constituted by the Centre held 100 meetings with several top organisations, including RBI and World Bank, to take a call on the scheme that will benefit 23 lakh central government employees. He said that the government employees will have a choice to make between the New Pension Scheme and UPS. "PM Modi constituted a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organisations and nearly all the states. There's a difference between how PM Modi works and the opposition works," Vaishnaw said. "Unlike the opposition, PM Modi believes in holding extensive consultations. Following extension consultations with everyone, including the Reserve Bank of India and the World Bank, the committee has recommended a Unified Pension Scheme. Today, the Union Cabinet has approved this Unified Pension Scheme, and it will be implemented in the future," he added. "Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension...50 per cent assured pension is the first pillar of the scheme...second pillar will be assured family pension...About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS)...There will be an option for the employees to opt between NPS and UPS," Vaishnaw said. None
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