– The Centre has unveiled a new ‘Unified Pension Scheme’ (UPS) for government employees, fulfilling a long-standing demand of government unions.
– The UPS assures retirees half their last drawn salary as a lifelong monthly benefit, along with other features like periodic dearness relief hikes and a minimum pension of ₹10,000 a month for pensioners with at least 10 years of government service.
– The UPS has evoked mixed responses from trade unions, with some welcoming the move while others claiming it is meant to hoodwink employees.
– The UPS is similar to the Old Pension Scheme (OPS) in many aspects but is not unfunded. Employees will contribute 10% of their salary with the government contributing 18.5%. The scheme will have a retrospective effect, making those who retired under the NPS eligible for UPS.
– The decision seems to be targeted at increasing goodwill for upcoming State elections in Delhi, Bihar, Jharkhand, Haryana, Maharashtra, and Jammu-Kashmir, where the BJP faces a formidable Opposition.