Unified Pension Scheme (UPS) Explained in 10 Points
- The Union Cabinet, led by PM Modi, approved the Unified Pension Scheme (UPS) for central government employees, ensuring an assured pension.
- To qualify, employees need a minimum of 25 years of service; the scheme benefits 23 lakh central government employees.
- Government contribution to the pension fund will increase from 14% to 18.5%, while employee contributions remain unchanged.
- In case of a pensioner's death, their family will receive 60% of the pension the employee was receiving.
- Pensions will be indexed to inflation, with Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Source: Moneycontrol
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it's tax payers money used for votes
How much will be the lump sump amount? Also can private employees participate in UPS
I think lumpsum is 1/10 of basic pay, for every 6 months service. No, private employees can't participate. As of now, it is only for Central Govt employees, but State Govts will be likely rolling out same scheme in their states.
Modi bit the bitter pill to defeat the INC scorched earth Old Pension Scheme. It is surprising to note so many folks here dissing the move without taking it in the context of INC's OPS politics.
The sad bit is this will be a sort of taking a step back from the pension reforms and will make government jobs more lucrative in a fanatically government job obsessed country.
However, all said this is among the best policy interventions of the Modi Government. This is why it is important to vote Modi/BJP to power forever. INC is a bunch of power hungry thugs who will do what it takes to rule forever at the cost of the country.
Good or bad will be defined by indian market. In best case NPS m8ght give better return if indian market would grow at the current rate
This scheme is devious in its intent. People are going to get incentivised to stick/vote for the current govt for hopes of future benefits ( lumpsum / pension )
And suddenly again getting employed in central govt is now lucrative.