BUSINESS
The Central Railways (CR) and Western Railway (WR) employees which are almost more than 1.36 lakh are expected to benefit from the recently introduced Unified Pension Scheme (UPS) by the Union Government, as per officials. The scheme is scheduled to be implemented by April 1, 2025, and is anticipated to benefit 23 lakh central government employees overall. The Unified Pension Scheme (UPS), was sanctioned by the Narendra Modi -led government on Saturday. Under this scheme, employees who have joined the service after January 1, 2024, will be eligible to avail of the scheme. Employees who are currently under the National Pension Scheme (NPS) and who are willing to go for UPS will be entitled to a guaranteed pension scheme adding up to 50% of their average basic pay that will be paid to them in the last 12 months before retirement. The minimum service required to avail this scheme has been set as 25 years. The Western Railway’s Zonal Manager, Ashok Kumar Mishra stated that around 66,000 of their 96,000 employees which amounts to 70% are NPS subscribers and who are also expected to benefit from the UPS. The scheme strengthens pension security as it is not market -linked like NPS. The financial burden of zonal railways will be impacted as the government or employer contribution has been increased from 14 % under NPS to 18.5% under UPS. Meanwhile, there are around 96,039 employed by Central Railways out of which 70,778 or 73.69% are currently NPS subscribers and they are expected to gain from the new scheme. (With inputs from PTI) None
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