The Union Cabinet on Saturday approved the Unified Pension Scheme (UPS). Under this, 50 percent of the basic salary will be ensured as pension for government employees. UPS has been introduced as an alternative to the New Pension Scheme (NPS) for central employees.
The government will contribute 18.5 percent for the Unified Pension Scheme. It also has provisions for family pension, guaranteed minimum pension and lump sum payment after retirement. Union Minister Ashwini Vaishnav said about this scheme, ‘The government contributes 14 percent on its behalf in NPS, which has been increased to 18.5 percent. Employees will have the option to choose from NPS to UPS only once.’
Ashwini Vaishnav said, ‘Today the Union Cabinet has approved the Unified Pension Scheme (UPS) for government employees. 50% assured pension is the first objective of this scheme. The second focus is on assured family pension. About 23 lakh employees of the central government are going to benefit from this integrated pension scheme. The special thing is that employees will have the option to choose between NPS and UPS. ‘ He said that government employees had demanded some changes in the new pension scheme. Regarding this, PM Modi constituted a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with various organizations and almost all the states.
‘UPS will be implemented in future’
The Union Minister said, ‘There is a difference in the way PM Modi and the opposition work. Unlike the opposition, Narendra Modi believes in large-scale consultation. Detailed discussions were held with everyone including the Reserve Bank of India and the World Bank in this matter. After this, the committee has recommended the Integrated Pension Scheme.’ He said that today the Union Cabinet has approved this scheme, which will be implemented in future.
Prime Minister Narendra Modi posted on Twitter and said, ‘We are proud of all the government employees who work hard for the progress of the country. The Unified Pension Scheme (UPS) will ensure dignity and financial security of these employees. This step reflects our government’s commitment to their welfare and secure future.’
NPS had become an election issue
It is worth noting that NPS had become an election issue for government employees. During the last few elections, Congress and other opposition parties had promised to end this scheme and implement the old scheme. Ashwini Vaishnav clarified that employees’ contribution will be included in both NPS and UPS. Government employees will not have to make any additional contribution on their behalf in UPS. Only the government’s contribution is being increased in this.
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