The Union Cabinet headed by Prime Minister Narendra Modi has approved on Saturday the Unified Pension Scheme which will offer pension assurance, family pension and a minimum assured pension to those employees who are under the central government’s service. Earlier this month Union Minister Ashwini Vaishnaw stated that the scheme was to provide employment to 23 lakh employees.
The UPS provides pension pertaining to 50 % of the last 12 months’ basic salary provided the employee has completed 25 years in the service. For instance, once a pensioner dies his/her family will be provided with 60% of the pension that was given to that particular pensioner. Also, the scheme makes provisions for a minimum assured pension of Rs 10,000 every month for employees that retire after working for 10 years.
The new scheme also raises the central government share to 18%, from the present 14% while the employees’ share remains at 10%.
This came after the Finance Secretary TV Somanathan conducted a review in the year 2021 after certain non BJP ruled states prefer to go back to the OPS.
The Cabinet also gave its nod to extend and integrate three ongoing schemes into one new central scheme, ‘Vigyan Dhara’, in the Department of Science and Technology which will cost Rs 10,579. 84 crore until 2025-26. Also, a new policy called ‘BioE3 Policy’ was adopted to support the biomanufacturing and entrepreneurship.
