UPS ensures dignity, financial security for govt employees, says PM Modi | Economy & Policy News

“We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future,” Modi said in a post on X.

Announcing Cabinet decisions, Union Information and Broadcasting Minister Ashwini Vaishnaw said that under the Unified Pension Scheme (UPS), government employees will now be eligible to get 50 per cent of the average basic pay drawn over the last 12 months before the superannuation as pension.

For this full pension or 50 per cent of pay as the pension, he said, the eligibility service length will be 25 years.

However, he said, it would be proportionate for a lesser service period up to a minimum of 10 years of service.

Union Home Minister Amit Shah on Saturday hailed the decision on assured pensions to government employees, saying the Modi govt has reiterated its commitment to the financial security of those who form the backbone of the nation’s governance.

The Union Cabinet on Saturday approved an assured 50 per cent of salary as pension for 23 lakh government employees who joined service under the National Pension System (NPS).

“Congratulations to our central government employees on the approval of the Unified Pension Scheme by PM Shri @narendramodi Ji in the Union Cabinet today. With the approval of the scheme, the Modi govt has reiterated its commitment to the financial security of our central government employees, who form the backbone of the nation’s governance,” Shah wrote on ‘X’.

The National Pension System is applicable for government employees joining the service after April 1, 2004.

It was based on the premise of contribution rather than defined benefit applicable for employees prior to the NPS.

Announcing the Cabinet decisions, Union Information and Broadcasting Minister Ashwini Vaishnaw said that under the Unified Pension Scheme (UPS), government employees will now be eligible to get 50 per cent of the average basic pay drawn over the last 12 months before the superannuation as pension.

For this full pension or 50 per cent of pay as the pension, he said, the eligibility service length will be 25 years.

Shiv Gopal Mishra, Secretary of the Joint Consultative Machinery (JCM), a joint form of government employees’ organisations, said they were invited by the prime minister for the meeting.

“This was for the first time that JCM was invited by the PM. It was a very good meeting. It was a very proud moment for 32 lakh government employees,” he told reporters here.

After the meeting, the prime minister posted on X: “Met a delegation of staff side from the Joint Consultative Machinery for Central Government employees. They expressed joy on the Cabinet’s decision regarding the Unified Pension Scheme.”

Mishra’s remarks came after the Union Cabinet approved an assured 50 per cent of salary as pension for 23 lakh government employees who joined service under the National Pension System (NPS).

“It was a very courteous meeting with the prime minister. He talked about the assured pension scheme for those employees who joined the service after 2004. So far, their pension was dependent on stock market and market speculations,” he added.

Mishra said that from now on, employees will get half of their last salary on retirement, besides DA benefits.

“We were told that the family pension will be 60 per cent plus the DA. There has been talk of a minimum pension of Rs 10,000,” he said.

Mishra said the prime minister has taken cognisance of the employees’ agitation and called them for discussions.

“He has also assured that the government will bring welfare schemes in the future too,” the JCM secretary said.

The National Pension System is applicable for government employees joining service after April 1, 2004. It was based on the premise of contribution rather than defined benefit applicable for employees prior to the NPS.

“We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future,” Modi said in a post on X.

Announcing Cabinet decisions, Union Information and Broadcasting Minister Ashwini Vaishnaw said that under the Unified Pension Scheme (UPS), government employees will now be eligible to get 50 per cent of the average basic pay drawn over the last 12 months before the superannuation as pension.

For this full pension or 50 per cent of pay as the pension, he said, the eligibility service length will be 25 years.

However, he said, it would be proportionate for a lesser service period up to a minimum of 10 years of service. NPS subscribers can now opt for the Unified Pension Scheme (UPS), which offers assured pension applicable from the beginning of the next financial year.

First Published: Aug 24 2024 | 9:32 PM IS