Unified Pension Scheme brought by Modi government, what exactly is this pension scheme?

The Union Cabinet chaired by Prime Minister Narendra Modi approved the Unified Pension Scheme (UPS) yesterday (August 24). Union Information and Technology Minister Ashwini Vaishnav gave this in a press conference after the Cabinet meeting. The central government has claimed that this scheme will be launched to provide guaranteed pension, guaranteed family pension and guaranteed minimum pension to government employees. *Under this new pension scheme, government employees will get 50% of their salary as pension. This new pension scheme for government employees has been announced. Under the new scheme, government employees with at least 25 years of service will get 50 percent of the average basic pay (basic pay) earned in the last 12 months before retirement. For guaranteed family pension, 60 percent of the employee’s pension. can be drawn immediately before his death. The rule regarding guaranteed minimum pension is that government employees with at least 10 years of service will be eligible for a pension of Rs 10,000 per month on retirement. Lakhs of government employees across the country will benefit from this scheme, Ashwini Vaishnav said at a cabinet press conference in the capital Delhi. Ashwini Vaishnav announced the scheme. Talking about the government employees, Vaishnav said, “Today, the Union Cabinet has approved the Unified Pension Scheme (UPS) for government employees which provides assured pension. 50% Assured Pension is the first pillar of the scheme.” The second pillar is a fixed family pension, about 23 lakh central employees will benefit from the scheme. Employees can choose between NPS (National Pension System) and UPS (Unified Pension Scheme).” The Cabinet also approved the continuation of the three schemes merged into an integrated central sector scheme of the Department of Science and Technology (DST) ‘Vigyan Dhara’.2021- 22 to 2025-26 during the 15th Finance Commission period, the proposed expenditure for the implementation of the integrated scheme ‘Vijnana Dhara’ is about Rs 10 thousand 579 crores. *First is at least 50 percent guaranteed pension* Ashnivi Vaishnav said, “There was a demand from the employees. Their demand was reasonable that a fixed amount should be paid as pension.” The amount would be 50 percent of the average basic pay for the 12 months preceding retirement. However, for this it is a condition that the employee should have completed 25 years of service. If the service is less than this (more than 10 years and less than 25 years), then the amount will be accordingly.*Second – Assured Family Pension*If an employee dies during service In that case his family (wife) will get 60 percent of the amount as pension.*Third – Assured Minimum Pension*Minimum 10 thousand rupees per month will be paid to the employee in case of at least 10 years of service.*Fourth – Inflation wise adjustment*Employee and family pension will be linked to inflation. Its benefit will be available in all types of pension i.e. inflation index will be included in the pension of the employees. This inflation discount is based on the index of ‘All India Consumer Prices for Industrial Workers’. This arrangement is for existing employees.*Fifth – In addition to gratuity, a lump sum will be paid on termination of employment*It will be calculated on the scale of basic pay plus one-tenth of dearness allowance of the employee for every six months of service. This amount will not affect the guaranteed pension of the employees. *Planning of the new pension scheme* Ashwini Vaishnav said on Saturday (August 24), “Prime Minister Modi has appointed Dr. A committee was formed under the leadership of Somnath (Finance Secretary).””The committee held discussions with trade unions of almost all the states, as well as the current situation in other countries around the world. After this process, the committee recommended the Unified Pension Scheme (UPS), which has been approved by the government,” he said. The scheme (UPS) will be implemented in the coming days. Ashwini Vaishnav also said that the burden of this scheme will not fall on the employees. “Earlier 10 percent contribution was given by the employees and 10 percent contribution was also given by the government”. In 2019, the government increased the government contribution by 14 percent. Increasing it, the government will now contribute 18.5 per cent.” The scheme will come into force from 1 April 2025 and the relevant regulations will be worked on till then. Also, employees will have the option of being in NPS or UPS”, he added.