Govt approves UPS, assures 50% of basic pay as pension

 Govt approves UPS, assures 50% of basic pay as pension 

Govt Contribution Up To 18.5% From 14%; DA Added

 TIMES NEWS NETWORK 

New Delhi : Bringing significant benefits to 23 lakh central govt employees, the Narendra Modi govt on Saturday announced an overhaul of the 20-year-old National Pension System, including a higher contribution by govt for a guaranteed payout of 50% of the average basic pay drawn during the last 12 months of service. With the Unified Pension Scheme (UPS), the govt sought to bring the benefits on a par with the old pension scheme (OPS) and blunt the opposition’s bid to revert to the earlier regime in the states governed by them, and mop up electoral dividends in the ensuing assembly polls. The decision also opens the doors for states to offer UPS, a contributory scheme, which will take the count to 90 lakh employees. 

The scheme — which employees will get a one-time option to switch to — introduces inflation adjustment through dearness relief. Those opting for UPS will be assured of 50% payout if they complete 25 years of service, information and broadcasting minister Ashwini Vaishnaw announced. The proportion will be lower for those who put in fewer years in any govt job. Elaborating on the “five pillars” of UPS, which will be implemented from April next year, Vaishnaw said a minimum pension of Rs 10,000 will be offered to those who work for 10 years, with family pension to the spouse pegged at 60% of the deceased govt employee’s pension