Aam Aadmi Party (AAP) MP Sanjay Singh sharply criticized the recently introduced Unified Pension Scheme (UPS), describing it as even worse than the existing National Pension System (NPS). Singh demanded the reinstatement of the Old Pension Scheme (OPS), arguing that the new scheme is a “betrayal” of central government employees.
In a statement on Sunday, Singh accused the central government of deceiving the nation’s workforce by introducing a scheme that involves a 10% salary deduction and excludes paramilitary forces from its benefits. He highlighted that the UPS requires a 25-year service period for eligibility, a condition that disqualifies many personnel in the paramilitary forces.
“The UPS is worse than the NPS and betrays the employees of this country. Paramilitary forces are excluded because they do not serve for 25 years, meaning they’ll only receive a mere Rs 10,000 monthly as a pension. Additionally, the 10% deduction from employees’ salaries will be held by the government, which will then provide a pension based on the average of the last 12 months’ salary,” Singh stated.
He further alleged that the Modi government has taken large sums from employees through the 10% deduction while offering reduced benefits compared to the OPS. “The duration of service was extended from 20 to 25 years, making paramilitary forces ineligible for the UPS. This decision must be reversed,” Singh added.
Echoing similar concerns, Jan Suraaj chief Prashant Kishor said the UPS appears to be a compromise between the NPS and OPS, but doubted it would satisfy those advocating for the OPS’s return. Kishor pointed out that state governments are yet to decide on adopting the UPS, noting that Bihar has already committed to the NPS under Chief Minister Nitish Kumar.
Meanwhile, Maharashtra Congress President Nana Patole questioned why the government is reluctant to restore the OPS. “They’re creating a pension scheme by taking money from employees, but the real question remains: why isn’t the government implementing the Old Pension Scheme?” Patole remarked.
The Modi government approved the Unified Pension Scheme on Saturday, set to be implemented from April 1, 2025. The scheme aims to combine the advantages of both the Old Pension Scheme and the New Pension Scheme. It guarantees a fixed pension amount, ensuring that central government employees who have served for at least 25 years will receive 50% of their last drawn salary from the past 12 months, with post-retirement inflation-linked increments.
However, opposition parties continue to push for the return of the OPS, which was replaced by the NPS in 2004. The NPS, based on employee and employer contributions invested in selected funds, offers a pension amount dependent on the returns from those investments.