Prime Minister Modi Approves New Unified Pension Scheme for Government Employees
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Unified Pension Scheme (UPS) for central government employees. Information and Broadcasting Minister Ashwini Vaishnaw announced the decision on Saturday, stating that about 23 lakh employees will benefit from the new scheme.
Key Features of the Unified Pension Scheme (UPS)
The UPS offers several benefits for government employees:
- An assured pension of 50% of the average basic pay drawn over the last 12 months before retirement, for a minimum qualifying service of 25 years.
- An option for employees to choose between the National Pension Scheme (NPS) and UPS.
- An assured family pension calculated at 60% of the employee’s pension before their demise.
- A minimum assured pension of Rs 10,000 per month after a minimum of 10 years of service.
- Inflation indexation on assured pensions, family pensions, and minimum pensions.
- Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
- A lump sum payment at retirement, equivalent to 1/10th of monthly emoluments (pay + DA) for every completed six months of service, in addition to a gratuity.
This new scheme aims to provide financial security and stability to government employees and their families.
Doubts Revealed
Prime Minister Modi -: Prime Minister Modi is the leader of India. He makes important decisions for the country.
Union Cabinet -: The Union Cabinet is a group of top leaders in the Indian government who help the Prime Minister make decisions.
Unified Pension Scheme (UPS) -: The Unified Pension Scheme is a new plan to give money to retired government workers every month.
central government employees -: These are people who work for the main government of India, not for state or local governments.
Information and Broadcasting Minister -: This is a person in the government who shares news and information with the public. Right now, it’s Ashwini Vaishnaw.
23 lakh -: Lakh is a term used in India to mean 100,000. So, 23 lakh means 2,300,000 people.
assured pension -: This means the government promises to give a certain amount of money to retired workers every month.
average basic pay -: This is the average amount of money a worker earns each month before any extra payments or bonuses.
family pensions -: This means that if a retired worker dies, their family will still get some money every month.
minimum pensions -: This is the smallest amount of money a retired worker will get each month, no matter what.
inflation indexation -: This means the pension amount will increase if the cost of living goes up, so people can still afford things.
National Pension Scheme -: This is another plan where workers save money for their retirement, and the government also adds some money to it.
