Lagatar24 Desk
New Delhi: The Narendra Modi government has given the green light to the Unified Pension Scheme (UPS), which guarantees 50% of the average basic pay from the last 12 months of service as a pension for central government employees. The scheme, approved on Saturday, is set to benefit approximately 23 lakh central government employees.
Union Minister Ashwini Vaishnaw announced the decision, emphasizing the extensive consultations that led to this reform. “Government employees have long demanded changes to the New Pension Scheme (NPS). In response, Prime Minister Modi formed a committee chaired by Cabinet Secretary TV Somanathan. This committee held over 100 meetings with various organizations, including nearly all states,” Vaishnaw stated.
Highlighting the difference between the current government and the opposition, Vaishnaw noted, “Unlike the opposition, PM Modi believes in thorough consultations. After extensive discussions with all stakeholders, including the Reserve Bank of India and the World Bank, the committee recommended the Unified Pension Scheme. The Union Cabinet has now approved this scheme, which will be implemented in due course.”
The Unified Pension Scheme is built on five key pillars, designed to address the demands of government employees for an assured pension amount. The first pillar is a guaranteed pension, amounting to 50% of the average basic pay over the last 12 months before retirement. This assured amount will be available to employees who have completed at least 25 years of service.
In addition to the assured pension, the scheme also includes provisions for an assured family pension, which forms the second pillar of the UPS. Employees will have the option to choose between the existing NPS and the newly introduced UPS, offering flexibility in their retirement planning.
Minister Vaishnaw explained the significance of the scheme, saying, “The Unified Pension Scheme addresses a logical requirement of government employees for an assured pension amount. This reform is a significant step towards ensuring financial security for central government employees in their post-retirement years.”
The introduction of the Unified Pension Scheme marks a major shift in the government’s approach to pension reforms, aligning with the broader goal of providing robust social security measures for its employees. As the scheme rolls out, it is expected to bring considerable relief and assurance to a large section of the government workforce.
