Maharashtra CM Eknath Shinde Approves New Unified Pension Scheme
Mumbai (Maharashtra) [India], August 25: In a significant move, the Maharashtra Cabinet, led by Chief Minister Eknath Shinde, has approved the central government’s Unified Pension Scheme (UPS). The UPS was approved by the Modi government on Saturday and is set to take effect on April 1, 2025.
Opposition parties had been advocating for the reinstatement of the old pension scheme (OPS), which was replaced by the new pension scheme (NPS) in 2004. The NPS was based on defined contributions by employees and employers, with the funds invested in select portfolios. The pension amount under this scheme was dependent on the returns from these investments.
The government asserts that the Unified Pension Scheme combines the advantages of the old pension scheme with the features of the new pension scheme. The UPS includes provisions for a fixed pension amount–a guaranteed and predetermined sum that a retiree will receive regularly after retirement.
Under the UPS, all central government employees who have served for 25 years or more will receive 50 per cent of their last drawn salary from the past 12 months as a pension. Additionally, these employees will be eligible for post-retirement inflation-linked increments to their pension amount.
Doubts Revealed
Maharashtra -: Maharashtra is a state in the western part of India. It is known for its capital city, Mumbai, which is the financial hub of the country.
CM -: CM stands for Chief Minister. The Chief Minister is the head of the government in a state in India.
Eknath Shinde -: Eknath Shinde is the current Chief Minister of Maharashtra. He is a politician who leads the state government.
Unified Pension Scheme -: The Unified Pension Scheme (UPS) is a new plan that combines features of old and new pension systems to provide a fixed amount of money to retired government employees.
Cabinet -: The Cabinet is a group of senior government officials, usually chosen by the Chief Minister, who make important decisions for the state.
Central government -: The central government is the national government of India, which makes decisions for the entire country.
Inflation-linked increments -: Inflation-linked increments are increases in the pension amount to keep up with the rising cost of living, so that retired people can afford things even if prices go up.
