Union Cabinet approves assured pension for govt employees; makes NPS attractive
By : DC Correspondent
Update: 2024-08-24 15:20 GMT
New Delhi: Union Cabinet on Saturday approved an assured 50 per cent of salary as pension for 23 lakh government employees who joined service under the National Pension System (NPS).The National Pension System is applicable for government employees joining the service after April 1, 2004. It was based on the premise of contribution rather than defined benefit applicable for employees prior to the NPS.
Announcing Cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said the Unified Pension Scheme (UPS) announced that government employees will now be eligible to get 50 per cent of the average basic pay drawn over the last 12 months before the superannuation as pension.
For this full pension or 50 per cent of pay as the pension, he said, the eligibility service length will be 25 years.
However, he said, it would be proportionate for a lesser service period up to a minimum of 10 years of service.
NPS subscribers can now opt for the Unified Pension Scheme (UPS), which offers assured pension applicable from the beginning of the next financial year.
Last year, the finance ministry set up a committee under Finance Secretary TV Somanathan to review the pension scheme for government employees and suggest any changes, if needed, in light of the existing framework and structure of the National Pension System.
Several non-BJP-ruled states have decided to revert to the DA-linked Old Pension Scheme (OPS) and also employee organisations in some other states have raised demand for the same.
Briefing media, Cabinet Secretary-designate TV Somanathan said the new scheme is applicable from April 1, 2025.
The benefits of the Unified Pension Scheme are applicable for those retired and retiring till March 31, 2025, with arrears, he added.