The UPS is readied to profit 23 lakh central government employees right away. Nevertheless, this number could raise to 90 lakh if state federal governments decide to sign up with the system.
New Delhi: The centre on Saturday accepted the Unified Pension plan Plan (UPS) for main public servant which is expected to influence 23 lakh employees, aimed at offering monetary safety and security and security for government workers post-retirement.
What are some key functions of the UPS?
Secured Family Pension:
In the unfavorable occasion of a staff member’s death, their partner will certainly obtain a family pension, guaranteed at 60% of the pension plan that the staff member was drawing prior to their fatality.
Assured Minimum Pension Plan:
Also for employees who have finished a minimum of 10 years of service, there is a guaranteed minimum pension plan of 10,000 each month upon retirement.
Rising cost of living Indexation:
Both the guaranteed pension plan and the family pension undergo rising cost of living indexation. This modification ensures that the pension plans equal inflation.
Dearness Alleviation:
Similar to serving workers, senior citizens under the UPS will receive Dearness Relief based upon the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Round Figure Settlement on Superannuation:
Along with gratuity, workers will certainly obtain a round figure repayment at the time of superannuation. This repayment will certainly be 1/10th of the staff member’s month-to-month emoluments (including pay and Dearness Allowance) as on the day of retirement, for every completed six months of service. This lump sum settlement will certainly not reduce the quantum of the guaranteed pension.
” We are proud of the effort of all government employees who contribute significantly to nationwide progression. The Unified Pension plan System makes certain self-respect and financial security for public servant, aligning with our dedication to their well-being and a safe future,” Head of state Narendra Modi claimed in a message on X.
The UPS is readied to benefit 23 lakh central public servant quickly. Nonetheless, this number might raise to 90 lakh if state governments opt to join the scheme, expanding its benefits to a bigger swimming pool of civil servant across India.
The news came against the backdrop of numerous non-BJP states determining to go back to the DA-linked Old Pension Plan (OPS) and worker organisations in a few other states elevating demand for the same.
The National Pension System (NPS) has actually been executed for all public servant other than those in the militaries signing up with the central government on or after January 1, 2004.
Many state/Union Territory governments have actually also notified NPS of their new workers.
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Under the OPS, retired civil servant got 50 per cent of their last drawn salary as month-to-month pensions. The amount maintains increasing with the walking in the DA rates. OPS is not fiscally lasting as it is not contributory, and the burden on the exchequer maintains placing.
