Vikrant Shekhawat : Aug 24, 2024, 09:00 PM
Modi Government: In the important meeting of the Union Cabinet held today, the Modi government has taken a big and revolutionary decision for the Indian employees. It has been decided to implement the Unified Pension Scheme (UPS) by ending the Old Pension Scheme (OPS) and New Pension Scheme (NPS). This scheme will be effective from April 1, 2025 and will directly benefit 23 lakh central employees.Unified Pension Scheme: A New DirectionThe Unified Pension Scheme (UPS) aims to provide a simpler and more beneficial pension scheme to the employees. Giving information about this new scheme, Union Information and Broadcasting Minister Ashwini Vaishnav said that under this scheme, employees who serve for 25 years or more will get full pension. This step has been taken to ensure the future security of government employees.New pension formatUnder this new scheme, employees who serve for 10 years will get a monthly pension of Rs 10 thousand. Apart from this, if an employee dies during service, his wife will get 60 percent of the pension, which will provide financial security to the family.The government has also announced that if an employee has completed at least 25 years of service, then at least 50 percent of the average salary of the last 12 months of retirement will be given as pension. Apart from this, if the pensioner dies, his family will be given 60 percent of the pension received at the time of death.New options to employees under NPSEmployees receiving pension under NPS (New Pension Scheme) will be given the option to go to UPS. This option will be applicable to all employees who have retired or are going to retire under this scheme since the inception of NPS. The government has also assured to pay the arrears for this, so that employees who have retired since 2004 will also be able to take advantage of this scheme.Likely to be implemented on statesThe effect of this decision will not be limited to central employees only. The government has said that state governments can also have the option to adopt this scheme, so that employees can get better pension security at the state level as well.ConclusionThe Unified Pension Scheme (UPS) is an ambitious and public interest step taken by the Modi government. This scheme has been designed to strengthen the future financial security of government employees and its implementation will provide relief and security to lakhs of central employees. There is a wave of enthusiasm and hope among the employees about the UPS scheme to be implemented from April 1, 2025, which is going to give a new shape to the pension system in future.At least 50 percent of the average salary of 12 monthsThe government said that if an employee has worked for a minimum of 25 years, then at least 50 percent of the average salary of the last 12 months before retirement will be available as pension. If a pensioner dies, his family will get 60 percent of the pension received at the time of death.NPS holders will get the option to join UPSThe Union Minister said that all NPS holders will get the option to join UPS. This will also apply to all those who have retired or are about to retire under NPS since its inception. The government will pay the arrears for this. Employees who have retired since 2004 will also get the benefit.