Centre approves ‘Unified Pension Scheme’ for govt employees

Union Cabinet approves assured 50 per cent of salary as pension for govt employees under Unified Pension Scheme.

Updated on: Aug 24, 2024, 22:17:07 IST

By HT News Desk

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The Narendra Modi government on Saturday approved assured 50 per cent of salary as pension for government employees under Unified Pension Scheme.

Union Minister Ashwini Vaishnaw briefs the media on Unified Pension Scheme in New Delhi. (PTI)

Union minister Ashwini Vaishnaw said,"Government employees have demanded some changes in the New Pension Schemes. For this, PM Modi constituted a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organisations and nearly all the states."

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"There's a difference between how PM Modi works and the oppositions works. Unlike the opposition, PM Modi believes in holding extensive consultations. Following extensions consultations with everyone, including Reserve Bank of India and World Bank, the committee has recommended a Unified Pension Scheme. Today, the Union Cabinet has approved this Unified Pension Scheme, and it will be implemented in the future," the minister added.

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‘50% assured pension is first pillar of scheme’: Vaishnaw

“A 50% assured pension is the first pillar of the scheme...second pillar will be assured family pension...About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS)...There will be an option for the employees to opt between NPS and UPS,” ANI quoted the minister as saying.

Explaining the provisions of the scheme, Vaishnaw said,"The Unified Pension Scheme has five pillars. The (government) employees wanted an assured amount, which was a logical requirement. Thus, 50 per cent assured pension is the first pillar of the UPS. This amount will be the average of basic pay of 12 months before superannuation. If someone has worked for 25 years, then that person will get this assured pension amount."

PM Modi hails ‘Unified Pension Scheme’

Prime Minister Narendra Modi hailed Unified Pension Scheme, saying,"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."

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HT News Desk
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