The Centre has announced a new ‘Unified Pension Scheme’ (UPS) for government employees, fulfilling a long-standing demand of government unions. The UPS assures pensioners half their last drawn salary as a lifelong monthly benefit, with other features such as periodic dearness relief hikes and a minimum pension of ₹10,000 a month. The UPS has been met with mixed responses from trade unions, with some welcoming the move while others claim it is meant to deceive employees. The UPS is similar to the Old Pension Scheme (OPS) in many aspects, with employees contributing 10% of their salary and the government contributing 18.5%. The Centre’s increase in pension contribution will be an additional burden of ₹6,250 crore per year on the exchequer. The UPS aims to increase goodwill for the upcoming State elections in Delhi, Bihar, Jharkhand, Haryana, Maharashtra, and Jammu-Kashmir.