The Bhartiya Mazdoor Sangh (BMS) has welcomed the Union Government’s move to settle the issues on National Pension Scheme (NPS) raised by BMS and its affiliated unions.
“The introduction of the new ‘Unified Pension Scheme’ (UPS) is seen as a direct result of the sustained pressure exerted by BMS and the Government Employees’ National Confederation (GENC), an affiliate of BMS, through various forms of agitation over the past two decades advocating for the restoration of the Old Pension Scheme (OPS) and against the NPS”, said BMS in a press release.
In the press release, BMS also highlighted its long-standing demands, which include an assured 50 per cent of basic pay as pension, provision for dearness relief with pension, a minimum pension of Rs. 10,000, and a non-contributory system—features that were present in the OPS but absent in the NPS. According to BMS, many of these demands have been realised in the newly introduced UPS.
The UPS is a better option than the existing NPS, offering benefits such as an assured 50 per cent pension, dearness relief, family pension, an increase in Government contribution from 14 per cent to 18.5 per cent, and an additional lump-sum payment upon retirement. These enhancements make the UPS more closely aligned with the OPS.
https://twitter.com/BMSkendra/status/1827697323436388716
However, BMS has pointed out that despite these improvements, there are still differences between the UPS and OPS. Notably, the UPS remains a contributory pension scheme, unlike the OPS, where employees made no contributions. Additionally, the commutation of pension, a feature available under the OPS, is still not included in the NPS or the UPS.
BMS also noted that certain aspects of the UPS remain unclear, such as the ratio of the lump-sum payment upon exit, the revision of pensions in line with future pay commissions, the continuation of tax benefits, and potential increases in pension upon reaching certain age milestones (80, 85, 90, 95, and 100 years). BMS stated that further actions will be decided only after a thorough review of the detailed notification of the UPS, once it is available publicly.
Moreover, BMS has urged the Government of India to consider enhancing the minimum pension under the Employees’ Pension Scheme (EPS) 95 from Rs. 1,000 to Rs. 5,000, with a linkage to the consumer price index, and to extend medical benefits under the Ayushman Bharat Scheme.
Salient Features of UPS:
1. Assured Pension: Retirees will now receive 50 percent of their average basic pay over the last 12 months before retirement as a pension for a minimum qualifying service of 25 years. Proportionate for lesser service period upto a minimum of 10 years of service.
2. Government Contribution: The Government is increasing its contribution from 14 percent to 18.5 percent. Employee contribution will not increase.
3. Assured Family Pension: In case of a pensioner’s unfortunate demise, their family will receive 60% of the pension the employee was receiving.
4. Assured Minimum Pension: Rs 10,000 per month as pension, on superannuation after minimum 10 years of service.
5. Inflation Protection: Pensions will be indexed to inflation. Dearness Relief will be based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), as in case of serving employees
6. Lump-Sum Payment: Lump-Sum Payment at superannuation in addition to gratuity. 1/10 th of monthly emoluments ( pay +DA) as on the date of superannuation for every completed six months of the service. This Payment will not reduce the quantum of assured pension.
7. UPS Provisions: Provisions of UPS will apply to past retirees of NPS (who have already superannuated). Arrears for past period will be paid with interest at PPF rates.
8. UPS as an Option: UPS will be available as an option to the employees. Existing NPS / VRS with NPS as well as future employees will have an option of joining UPS. Choice, once exercised, will be final.
UPS is being implemented by the Union Government. Benefiting 23 lakh Union Government employees. The same architecture has been designed for adoption by State Governments. If also adopted by State Governments, can benefit over 90 lakh Government employees who are presently on NPS.
Leave a Comment