– The Union Cabinet has approved the Unified Pension Scheme (UPS) to be implemented on April 1, 2025, guaranteeing government employees a pension post-retirement.
– The UPS will offer a guaranteed pension of 50% of the last drawn salary for employees who joined after January 1, 2004.
– This approval is seen as a strategic move ahead of upcoming Assembly elections in Jammu & Kashmir, Haryana, Maharashtra, and Jharkhand.
– Several states have reverted to the Old Pension Scheme (OPS) due to dissatisfaction with the National Pension Scheme (NPS).
– Under the UPS, government contribution will be increased to 18.5% while employees will contribute 10% of their basic pay and DA.