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SIn this picture of June 2024, retired employees of Delhi Traffic Department protesting for pension.
•Sandeep Rai
•Designation, BBC Correspondent
Amidst the long-standing demand for reforms in the National Pension System (NPS), late on Saturday evening the Central Government has approved the Unified Pension Scheme i.e. UPS Scheme.
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Giving this information, Electronics and Information Technology Minister Ashwini Vaishnav said that this scheme will be implemented from April 1 next year and 23 lakh central government employees will benefit from it.
For the last few years, government employees have been demanding the restoration of the Old Pension Scheme and opposition parties had also made it an issue in the assembly elections held in some states.
The old pension scheme was also restored in some opposition ruled states, which include Rajasthan, Himachal Pradesh, Chhattisgarh and Punjab.
By the end of this year, assembly elections are going to be held in four states – Maharashtra, Jharkhand, Haryana and Jammu and Kashmir. Election dates have also been announced in Haryana and Jammu Kashmir.
In what ways is UPS different from NPS?
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When the government replaced the Old Pension Scheme (OPS) with the New Pension System (NPS), the provision of fixed pen sion was removed.
Along with this, contribution of employees was made mandatory, in this a provision was made to contribute 10 percent equally for the employee and the government.
In the year 2019, the government contribution was increased to 14 percent of basic salary and DA.
According to the new provision, after retirement, employees can withdraw 60 percent of the total amount. It was made mandatory for the employee to invest the remaining 40 percent in various schemes of pension fund managers promoted by public sector banks, financial institutions and private companies.
The schemes offered by these companies can be selected on the basis of 'lowest' to 'highest' risk.
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But government employee unions say that when NPS was implemented, it was said to be better than OPS, but those recruited after 2004 who are becoming retirees are getting very nominal pension.
Apart from this, the employees also have to pay their own contribution, whereas the pension in OPS was completely dependent on the social security scheme provided by the government.
Employees say that in the new UPS that has been introduced, no clear information has been given regarding the withdrawal of employee's contribution.
However, in UPS, apart from gratuity, a lump sum amount will be given on leaving the job. It will be calculated as one-tenth of the basic salary and dearness allowance for every six months of service of the employees.
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