UPS ensures dignity & financial security for govt employees, Says PM Modi

Prime Minister Narendra Modi Saturday said that UPS aims at dignity with financial security to government employees and thus brings to fore the commitment of the government towards the wellness and secure future. His comments came in the wake of the Union Cabinet's approving a policy to offer an assured pension of 50% salary for 23 lakh government employees who joined the National Pension System.

"We are proud of the hard work of all government employees who contribute significantly towards national progress. This Unified Pension Scheme secures respect and financial security for government employees, in line with our commitment to their well-being and a safe future," Modi posted on X.

While employees prior to the NPS were promised defined benefits, NPS since its inception in 2004 for all government employees whose date of joining is on or after April 1, 2004, was based on a contributory model.

Union Information and Broadcasting Minister Ashwini Vaishnaw, after announcing the Cabinet decisions, added that now an employee will get 50% of the average basic pay that is earned during the last 12 months before retirement under the Unified Pension Scheme. He further told that full pension would be given to those who have completed a minimum of 25 years of service, while the benefits would be on a proportionate basis if an employee has completed at least 10 years of service. Existing NPS subscribers can now join the Unified Pension Scheme, with the benefit being applicable from the coming financial year.

Union Home Minister Amit Shah also praised the move of the government and said, "The Modi government has reiterated its commitment to the financial security of government employees, whom I would call the backbone of the nation's governance.".

"Congratulations to our central government employees on the Unified Pension Scheme being approved by PM Shri @narendramodi Ji in the Union Cabinet today. Through the approval of the scheme, Modi govt has reiterated once again its commitment towards the financial security of our central government employees who are the backbones of our nation's governance," Shah wrote on 'X'.

Government employees welcomed the decision and thanked Prime Minister Modi for at least engaging them over the issue. Shiv Gopal Mishra, Secretary of the Joint Consultative Machinery—the body of government employees—said this was the first time that JCM had been invited by the Prime Minister for a meeting. Describing the meet, he termed it a proud moment for 32 lakh government employees.

"This was for the first time that JCM was invited by the PM. It was a very good meeting. It was a very proud moment for 32 lakh government employees," Mishra told reporters.

After the meeting, the Prime Minister posted on X: "Met a delegation of staff side from the Joint Consultative Machinery for Central Government employees. They expressed joy on the Cabinet's decision regarding the Unified Pension Scheme."

He further commented that the meeting was cordial, wherein the Prime Minister himself talked about the new pension scheme for employees who joined after 2004. The pensions of these employees were earlier linked with the ups and downs of the stock market and the vagaries of market speculation.

"It was a very courteous meeting with the prime minister. He spoke about the assured pension scheme for those employees who joined the service after 2004. So far, their pension was dependent on stock market and market speculations," Mishra added.

He said that now, at the time of retirement, the employee would get 50 percent of his last drawn salary along with DA. Family pension was proposed to be 60 percent of the pension plus DA, while minimum pension of Rs 10,000 was under discussion.

"We were told that the family pension will be 60 per cent plus the DA. There has been talk of a minimum pension of Rs 10,000," he said.

Mishra also mentioned that the Prime Minister acknowledged the employees' concerns and assured that the government would continue to bring in welfare schemes in future.

"He has also assured that the government will bring welfare schemes in the future too," the JCM secretary said.

Or simply, the National Pension System is for all who joined government service after April 1, 2004; it was basically a contributory scheme, unlike the earlier defined benefit plans. Now, with the Unified Pension Scheme, there is a certainty and security factor before the workforce about their financial future.