– Union Cabinet approved the Unified Pension Scheme (UPS) for government employees
– Scheme will be effective from April 1, 2025
– Political opposition tapped into dissatisfaction of government employees with the National Pension Scheme (NPS)
– UPS promises fixed pension, unlike NPS
– UPS has features like assured pension, assured minimum pension, assured family pension, inflation indexation, and lumpsum payment at superannuation
– NPS replaced OPS in 2004 to reform India’s pension policies
– NPS required employee contributions and offered lower assured returns, unlike OPS
– Committee recommendations led to the announcement of UPS
– UPS will be applicable to NPS retirees from 2004 onwards
– Employees can choose to remain under NPS but it is unlikely to be beneficial
– UPS is more fiscally prudent and funded contributory scheme
– UPS will cost the exchequer around Rs 6,250 crore
– Modern workplace trends mentioned at the end of the article