Bharatiya Mazdoor Sangh Welcomes New Unified Pension Scheme
The Bharatiya Mazdoor Sangh (BMS), an organization affiliated with the Rashtriya Swayamsevak Sangh (RSS), has expressed its approval of the Indian government’s new Unified Pension Scheme (UPS). For the past 20 years, BMS and its National Government Employees Council have been advocating for the restoration of the Old Pension Scheme (OPS) and addressing the shortcomings of the National Pension Scheme (NPS).
The new UPS is a result of these efforts and includes several features that BMS had demanded. These features include:
- 50% of the basic salary as a pension
- Inflation relief with the pension
- A minimum pension of Rs 10,000
- A non-contributory system
While the NPS lacked many of these features, the UPS has integrated most of them. The UPS is considered a better alternative to the NPS as it includes an assured 50% pension, inflation relief, a family pension, and an enhanced government contribution. The government’s contribution has been increased from 14% to 18.5%, along with a lump sum payment upon retirement, making it closer to the OPS.
Despite these improvements, BMS points out that some features of the OPS are still missing in the UPS. These include the contributory nature of the UPS, unlike the OPS, where employees did not need to contribute, and the absence of the commutation facility available in the OPS. Additionally, some important features of the OPS still require clarification, such as the ratio of the lump sum payment upon exit, pension revisions under future Pay Commissions, continuity of tax benefits, and pension increments at the ages of 80, 85, 90, 95, and 100 years.
BMS will await the detailed notification of the UPS for these clarifications and will decide on its further course of action after a detailed study of the scheme’s features post-notification. BMS has also requested that the Indian government consider increasing the minimum pension under EPS 95 from Rs 1,000 to Rs 5,000, linking it to the Consumer Price Index, and providing medical benefits under the Ayushman Bharat scheme.
Doubts Revealed
Bharatiya Mazdoor Sangh (BMS) -: Bharatiya Mazdoor Sangh (BMS) is a large workers’ organization in India that looks after the rights and interests of workers.
Rashtriya Swayamsevak Sangh (RSS) -: Rashtriya Swayamsevak Sangh (RSS) is a big group in India that works on social and cultural issues. It is known for its volunteer work and has many affiliated organizations.
Unified Pension Scheme (UPS) -: The Unified Pension Scheme (UPS) is a new plan by the Indian government to provide pensions to retired workers. It combines features from different pension schemes to make it better for workers.
National Pension Scheme (NPS) -: The National Pension Scheme (NPS) is an older plan in India where people save money for their retirement. The government and the workers both put money into this scheme.
50% assured pension -: A 50% assured pension means that when a worker retires, they are guaranteed to get at least half of their last salary as a pension every month.
inflation relief -: Inflation relief means that the pension amount will increase over time to keep up with the rising prices of goods and services, so the pensioners can maintain their standard of living.
Old Pension Scheme (OPS) -: The Old Pension Scheme (OPS) was a previous plan where retired workers received a fixed amount of money every month from the government, without needing to save during their working years.
