Key Points
The Union cabinet led by Prime Minister Narendra Modi on Saturday approved a new pension policy for nearly 2.3 million central government employees, unveiling a framework that will give assured 50% of basic pay as monthly payout, assuaging federal staff unions that had sought guaranteed retirement benefits...
Modi had set up a panel led by cabinet secretary-designate TV Somanathan, the then finance secretary, in April 2023 to rework the current pension system, known as the new pension scheme or NPS..
The new system, the Unified Pension Scheme or UPS, will offer 50% of the average basic pay drawn by a federal employee over the 12 months prior to retirement provided he or she completes 25 years of service..
We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future, Modi said in a post on X on Saturday..
The whole opposition has been saying that government must make some decision regarding pension... retired employees should get pension based on their salary (before retirement), not just 50% (of their salary) but they should get 100%, he said..
