Unified Pension Scheme Ensures Dignity And Financial Security For Government Employees: Prime Minister Modi

Prime Minister Narendra Modi on Saturday (24 August) said that the Unified Pension Scheme (UPS) ensures dignity and financial security for government employees.

The UPS was approved by the PM Modi-led Union Cabinet on Saturday.

The scheme, which is expected to impact 23 lakh employees, is aimed at providing financial security and stability for government workers post-retirement.

In a post on X, PM Modi said,"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".

After Union Cabinet nod to the UPS scheme, PM Modi also 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.

Secretary (Staff Side) National Council of Joint Consultative Machinery Shiv Gopal Mishra thanked the Prime Minister for interacting with the delegation which represent 32 lakh employees and lauded the government for the UPS.

Under this scheme, 50 per cent of the salary is guaranteed as pension for government employees. The UPS will come into effect from 1 April 2025.

Union Minister Ashwini Vaishnaw explained that around 23 lakh central government employees would benefit from the UPS, and would have an option to choose between the National Pension System (NPS) and the new scheme.

The scheme consists of three main parts:

1. A 50 per cent assured pension

2. An assured family pension

3. An assured minimum pension

Assured pension

Will be calculated as 50 per cent of the average basic pay from the 12 months preceding retirement. Employees with at least 25 years of service will be eligible for this pension.

Assured family pension

If an employee passes away, 60 per cent of the pension they were receiving prior to their death will be provided to their family.

Assured minimum pension

This will guarantee a monthly payment of Rs 10,000 for employees retiring after at least 10 years of service.

The last change in central government's pension system was brought by the Vajpayee government under the New Pension System (NPS). This was based on a contributory model and was applicable to employees who joined the government employment after 1 April, 2004.

The Modi government's move comes at a time when the Congress party has promised to implement the old pension scheme in many recent election campaigns.

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