Unified pension scheme approved

New Delhi: In a significant move aimed at enhancing the financial security of government employees post-retirement, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Unified Pension Scheme (UPS). This reform follows extensive consultations with various stakeholders, including the Reserve Bank of India and the World Bank.

Union Minister Ashwini Vaishnaw announced the approval, highlighting the government’s responsive approach. "Government employees have demanded some changes in the New Pension Scheme. In response, PM Modi constituted a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organizations and nearly all the states," said Vaishnaw.

Emphasizing the government's approach, the minister added, "There's a difference between how PM Modi works and how the opposition works. Unlike the opposition, PM Modi believes in holding extensive consultations. Following these consultations, the committee has recommended a Unified Pension Scheme, which the Union Cabinet has approved today. It will be implemented in the near future."

The UPS introduces several key features, including an assured pension, assured family pension, and a minimum pension. Employees with at least 25 years of qualifying service will receive an assured pension of 50 percent of the average basic pay drawn over the last 12 months before retirement.

In the event of an employee's death, the family will receive a pension equal to 60% of the amount the employee was entitled to before passing. The scheme also ensures a minimum pension of Rs. 10,000 per month for those who have completed at least 10 years of service upon retirement.

The assured pension, family pension, and minimum pension will be indexed to inflation, protecting retirees from rising costs. Additionally, pensioners will receive Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). A lump sum payment at superannuation will be provided, equivalent to one-tenth of the monthly emoluments (including pay and DA) for every completed six months of service.

This reform marks a major step forward in ensuring the long-term financial well-being of government employees across the country.