26/08/2024
NUR-C Newly elected office bearers for the year 2024 to 2026 in 24th AIC held at Haridwar, Uttarkhand
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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.
There may be many more shortcomings in UPS which may be known after the full text of UPS is notified.
Hence it is prudent to denounces the UPS and urges the Union Govt to
restore the non-contributory defined assured Old Pension Scheme.
