Prime Minister Modi Approves New Unified Pension Scheme for Government Employees
New Delhi, August 24: The central government has approved the Unified Pension Scheme (UPS), which will provide assured pensions, minimum pensions, and family pensions to government employees. This new scheme will come into effect on April 1 next year, giving central government employees the option to choose between the existing National Pension Scheme (NPS) and the new UPS.
Key Benefits of the Unified Pension Scheme
Information and Broadcasting Minister Ashwini Vaishnaw announced that about 23 lakh central government employees will benefit from the UPS. The scheme was developed after extensive consultations and is not linked to any upcoming elections.
Details of the Pension Scheme
The UPS includes three main pillars:
- Assured Pension: 50% of the average basic pay drawn over the last 12 months before retirement, for a minimum of 25 years of service. For shorter service periods, it will be proportionate, with a minimum of 10 years of service required.
- Assured Family Pension: 60% of the employee’s pension immediately before their demise.
- Assured Minimum Pension: Rs 10,000 per month after a minimum of 10 years of service.
Prime Minister Narendra Modi chaired the cabinet meeting and later posted on social media, emphasizing the scheme’s role in ensuring dignity and financial security for government employees.
Reactions to the New Scheme
Shiv Gopal Mishra, Secretary (Staff Side) of the National Council (Joint Consultative Machinery), praised the scheme and highlighted the Prime Minister’s engagement with the delegation of central government employees. Defence Minister Rajnath Singh also lauded the scheme, noting its benefits for lakhs of employees and their families.
The scheme includes inflation indexation on assured pensions, family pensions, and minimum pensions, along with a lump sum payment at superannuation in addition to gratuity.
Finance Minister Nirmala Sitharaman mentioned that the committee reviewing the NPS has made significant progress and aims to find a solution that balances fiscal prudence with the needs of government employees.
Doubts Revealed
Prime Minister Modi -: Prime Minister Modi is the leader of India. He makes important decisions for the country.
Unified Pension Scheme (UPS) -: The Unified Pension Scheme is a new plan to give money to retired government workers every month.
National Pension Scheme (NPS) -: The National Pension Scheme is an older plan where government workers save money for their retirement.
23 lakh employees -: 23 lakh means 2.3 million. It is a way to count a large number of people in India.
50% assured pension -: This means retired workers will get half of their last salary every month.
60% family pension -: If a retired worker passes away, their family will get 60% of the worker’s last salary every month.
minimum pension of Rs 10,000 -: No matter what, retired workers will get at least Rs 10,000 every month.
financial security -: This means having enough money to live comfortably without worries.
dignity -: Dignity means feeling respected and valued.
