– The Union Cabinet has approved the Unified Pension Scheme (UPS) to be implemented on April 1, 2025.
– UPS guarantees government employees a pension post-retirement, addressing calls for changes to the National Pension Scheme (NPS).
– The UPS will offer a guaranteed pension of 50% of the last drawn salary for employees who joined the service after January 1, 2004.
– Approval 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) amid dissatisfaction with the NPS.
– Under the UPS, government contribution will increase to 18.5%, while employees will contribute 10% of their basic pay and DA.