The Unified Pension Scheme (UPS) approved by Union Cabinet on
24.8.2024 is another dubious desperate effort to deceive the Govt employees of
their due full right to Old Pension Scheme known as OPS.
It is akin to the incometax restructuring as old regime and
new regime by tacitly making the old regime less advantageous than new regime
Restoration of old pension scheme with definite pension is
the only solution not any hybrid form of OPS and NPS in the name of UPS with
different combinations of features retrograde can not be accepted
The Old Pension Scheme was non-contributory and with assured
pension existing as per Central Civil Service Rules 1972 now 2021. A. B.
Vajpayee led NDA Govt had introduced the National Pension Scheme (NPS) in 2004
surreptitiously through an Executive Order for those recruited from 1.1.20O4.
The central and state Govt employees and central trade unions opposed it from
that day and were on path of struggles against it urging for restoration of
OPS. The Pension Fund Regulatory & Development Authority Act 2013 notified
in February 2014 enabled statutory basis for the NPS.
The unprecedented struggles by the Govt Employees for
restoration of Old Pension Scheme(OPS) and the whole hearted support rendered
to such struggles by the Joint Platform of Central Trade Unions and Federations
could compel the arrogant BJP regime to shift from its arrogant stance of
sticking to NPS, but the package offered by it in the name of so called UPS
reflects the same deceptive ploy of depriving the Govt employees of their
legitimate dues on account of pension. Several State Govts also reverted back
to the OPS and were urging for their share of state govt Employees contribution
to PFRDA to be refunded to their State Govts. Modi Govt had rejected all of
such requests of State Govts which reverted back to OPS. It was countered by
the relentless struggles of employees and trade Unions. Hence this dubious
attempt of deceptive UPS is made by Modi led ND Alliance Govt. The Finance
Secretary T. V. Somanathan Committee recommendations to study modifications in
NPS, which was also boycotted by several Employees federations, are used for
this desperate attempt of UPS - a cocktail of NPS and truncated OPS is approved
by the Union cabinet.
The Modi led ND Govt with its neo liberal pursuit of
safeguarding the interests of speculative crony capital has come with this UPS
with some modification of benefits with additional contribution of 4.5% from
the Govt only to further its investment of pension funds of Rs. 10,53,850
crores called Asset under Management (AUM) of total 99,77,165 employees under
NPS as on by 31.7.2024 in the share market.
The previous Andhra Pradesh State Govt had proposed similar
or somewhat better than UPS in place of NPS in the name of Guaranteed Pension
Scheme (GPS) with 50% of last drawn pay as pension for minimum 10 years of
service with defined contribution and purchase of 40% annuity, which was
correctly rejected by all the State Govt employees of AP urging for nothing
short of OPS. Now the Union Govt has come with similar rather less beneficial
scheme with some modifications in NPS which should are also aptly rejected by
vast majority of the employees urging for nothing less than OPS.
UPS is based on the continuity of 10% contributions by the
employees with the Government contribution increased to 18.5% from present 14%.
While in NPS the subscriber can take 60% and has to invest 40% in an annuity
and get pension, under UPS entire pension wealth will have to be foregone to
the government. In lieu of which government will give 10% of the employee
emoluments i.e., basic pay plus DA for every completed six months of service.
For 25 years of completed service the employee will get 5 months emoluments and
for 10 years of service will get 2 months of pay on retirement as benefit in
addition to gratuity.
In UPS, employee will get 50% of 12 months average basic pay
as pension on normal retirement at the age of 60 with the completion of 25
years of service, effective from 1-4-2025 that is for those retiring on
31-3-2025 but not applicable to those retired before it. In OPS for 10 years of
service 50% of last month's pay is pension and for voluntary retirement after
20 years of service employee gets 50% of pay as pension.
Employees with service less than 25 years will get
proportionately lesser pension in UPS. Employee with 20 years of service will
get only 40% of 12 months average basic pay as pension. For 10 years of service
employees will get only 20% of average basic pay as pension. In case of
proportionate pension for less than 25 years up to 10 years a minimum pension
of Rs 10,000 is proposed by government. While Minimum pension in OPS is Rs 9000
plus DA (which as on 1-4-2025 will be 57% that is Rs. 5130) so minimum pension
as on 1-4-2025 will be Rs.14,130. Hence the proposed Rs.10000 pension is half
of that of OPS. For less than 10 years of service at the time of superannuation
employee is not eligible for any pension
Under UPS family pension is 60% of pension i.e., 60% of 50%.
It means 30% of last pay for 25 years of service at the time of superannuation.
For employee with minimum pension of rupees 10,000 it will be 60% of it, i.e.,
Rs 6000. Minimum pension of rupees Rs 10000 applies only to superannuation and
not for family pension. But under OPS family pension is 50% of last pay if the
pensioner dies before 7 years after retirement or before 67 years of age. There
after family pension will be 30% of last pay. Minimum pension as on 1-4-2025
will be Rs.14130. But in UPS minimum family pension will be only Rs 6000.
DA/DR will be given to assured pension or minimum pension or
family pension based on the Consumer price index as in the case of serving
employees. Whether they will start a new base index from 1-4-2025 or they will
grant the same percentage of DA/DR as for serving and OPS pensioners are not
yet spelt out. In OPS if the pensioner or family pensioner completed 80 years
of age additional pension of 20%, for 85 years 30%, for 90 years 40%, 95 years
50% and 100 years 100% is given with Same DA for additional pension also. In
UPS this additional pension is not available. In OPS pension/family
pension/minimum pension is revised whenever pay commission is implemented while
there is no such assurance under UPS. Commutation of pension i.e., withdrawal
of 40% pension in advance available in OPS is not available in UPS. For those
employees who die or become invalid becoming all class unfit in NPS, OPS is
applicable to them already. Employees can opt to UPS or NPS, once opted will be
final.
