Unified Pension Scheme Announced By Modi Govt (Image Source: PTI)
Prime Minister Narendra Modi on Saturday lauded the launch of the Unified Pension Scheme, emphasising its significance in securing the future of government employees. Writing on X, he stated, “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.”
The Modi-led Cabinet approved the scheme, which offers central government employees the choice to remain under the existing National Pension Scheme (NPS) or switch to the new Unified Pension Scheme (UPS). Current NPS subscribers can also opt for the UPS, while state governments have the option to adopt it, potentially benefiting around 90 lakh individuals. The scheme is expected to incur an initial cost of Rs 800 crore for arrears, with an annual increase of Rs 6,250 crore in the first year.
Under the UPS, employees with at least 25 years of service will receive a pension equal to 50% of their average salary from the last 12 months before retirement. In the event of a pensioner’s death, their family will receive 60% of the pension. Additionally, employees who leave after 10 years of service will be entitled to a pension of Rs 10,000.
Union Minister Ashwini Vaishnaw highlighted the extensive consultations that shaped the UPS, noting that the scheme, which benefits 23 lakh central government employees, reflects a thorough and collaborative approach. “There is a notable difference in the way PM Modi operates compared to the opposition,” Vaishnaw remarked.
