Government employees expressed their gratitude on Saturday for the introduction of the Unified Pension Scheme (UPS), which assures pensions and thanked Prime Minister Narendra Modi for his engagement on this matter. The Prime Minister’s meeting with members of the Joint Consultative Machinery (JCM) marked the first time the JCM had been invited to discuss such issues directly with him. Shiv Gopal Mishra, Secretary of the JCM, described the meeting as a significant and proud moment for the 32 lakh government employees it represents.
Mishra said, “This was the first time JCM was invited by the Prime Minister. It was a very good meeting and a proud moment for government employees.” He noted that the UPS decision represents a significant shift from the previous National Pension System (NPS), which linked pensions to market fluctuations and left amounts uncertain for those who joined service after April 1, 2004.
The Prime Minister reflected the employees’ sentiments in a post on X, stating, “Met a delegation of staff side from the Joint Consultative Machinery for Central Government employees. They expressed joy on the Cabinet’s decision regarding the Unified Pension Scheme.” The UPS guarantees that government employees will receive 50 percent of their average basic pay from the last 12 months before retirement as their pension, a substantial improvement from the variable returns under the NPS.
The Union Cabinet approved the decision to ensure that employees with at least 25 years of service will receive the full 50 percent pension. Employees with less than 25 years of service will get a proportionate pension, with a minimum qualifying period of 10 years. Additionally, the scheme provides a family pension at 60 percent of the employee’s pension, plus dearness allowance (DA). The UPS also includes a provision for a minimum pension of Rs 10,000 per month.
Union Information and Broadcasting Minister Ashwini Vaishnaw explained that the new scheme aligns with the government’s commitment to the welfare and financial security of its employees. He said, “Under the Unified Pension Scheme (UPS), government employees will now be eligible to get 50 percent of the average basic pay drawn over the last 12 months before superannuation as pension.”
The UPS replaces the previous NPS system, which was based on contributions and market performance. This shift aims to provide greater financial security and predictability for retirees, addressing long-standing concerns among government workers.
Prime Minister Modi highlighted the scheme’s importance in ensuring dignity and financial stability for government employees. He acknowledged their significant contributions to national progress and affirmed the government’s ongoing commitment to their well-being and security.
The introduction of the Unified Pension Scheme marks a transformative change for government employees, offering assured benefits and reflecting the government’s dedication to their financial security. The scheme will apply from the beginning of the next financial year, providing a more stable and predictable retirement income for public sector workers.