Amid criticism from opposition, Congress leader Praveen Chakravarty welcomes Unified Pension Scheme
The Union Cabinet's approval of the Unified Pension Scheme (UPS) has received mixed reactions. Opposition leader Mallikarjun Kharge criticized the government, calling it another "U-turn". However, Congress's Praveen Chakravarty supported the scheme, saying it adds a minimum guarantee to the Old Pension Scheme (OPS) and is a prudent move.
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FollowAfter the Union Cabinet approved Unified Pension Scheme (UPS), guaranteeing central government employees 50% of their average salary in the last 12 months as pension, the opposition lead by the Indian National Congress hit out at it as Mallikarjun Kharge, Leader of Opposition in Rajya Sabha, criticized the government, saying the "U" in UPS stands for "U-turns" due to the government's frequent policy reversals. He listed several instances, including rollbacks on budget provisions, Waqf Bill, Broadcast Bill, and Lateral Entry.
“The ‘U’ in UPS stands for Modi Govt’s U turns! Post June 4, the power of the people has prevailed over the arrogance of power of the Prime Minister,” Kharge said in a post on X, adding, "Rollback in the budget regarding Long Term Capital Gain/Indexation. Sending Waqf Bill to JPC. Rollback of Broadcast Bill. Rollback of Lateral Entry. We will keep ensuring accountability and protect 140 crore Indians from this despotic government!”
Despite the opposition objection to the scheme the support for the scheme came from within the Congress as Praveen Chakravarty, a office bearer of the Congress and chairperson of the All India Professionals' Congress welcomed UPS and said it adds minimum guarantee to the Old Pension Scheme (OPS). In a post welcoming the UPS, he said, "Pension for govt staff in India is inherently a tax on the majority poor to pay the elite minority
So, OPS was reformed to NPS in 2013
But NPS did not assure a minimum amount for retired families
Now, UPS does that
UPS = NPS + Min guarantee
This is prudent & welcome".
The scheme, effective from April 1, 2025, will benefit 23 lakh employees who have completed 25 years of service.
Key features of UPS:
- Assured minimum pension of Rs 10,000 per month on superannuation after 10 years of service
- Family pension equal to 60% of employee's pension income after death of the pensioner
- Inflation indexation to account for price rise
- Lump sum withdrawal facility at retirement
The new scheme replaces the National Pension Scheme (NPS), which was based on employee and government contributions. In contrast, the Old Pension Scheme (OPS) provided 50% of the last drawn salary as monthly pension, increasing with DA rates. Several non-BJP states have opted to revert to the OPS, while employee organizations in other states are demanding the same.
