Amid ongoing protests by the non-BJP led States regarding a new pension scheme, the Union Cabinet, led by Prime Minister Narendra Modi, on Saturday approved the Unified Pension Scheme (UPS), designed to offer guaranteed pension benefits, family pensions, and a minimum assured pension for government employees.
Under this new scheme, the government will ensure that employees receive a pension equivalent to 50 per cent of their salary. The government’s contribution to the pension scheme has increased from 14 per cent to 18.5 per cent.
It may be recalled that TNIE had earlier reported that the new pension scheme will be based on
Andhra Pradesh's guaranteed pension scheme, under which, pensioners receive 50 per cent of their last drawn basic salary along with dearness allowance or DA, which is inflation-linked.
According to the Union Minister Ashwani Vaishnav, the scheme will benefit 23 lakh central government employees. The new scheme is set to be implemented on April 1, 2025, allowing employees the flexibility to choose between the National Pension System (NPS) and the Unified Pension Scheme (UPS). This choice will be final for both current and future employees.
The UPS is designed to provide government employees with guaranteed pension benefits, family pensions, and a minimum assured pension. The scheme guarantees government employees a pension equal to 50 per cent of their average basic salary from the last 12 months preceding their retirement, provided they have completed a minimum of 25 years of service.
In the event of the pensioner's death, their family will receive 60% of the pension amount that was being disbursed at the time of the pensioner's passing. The scheme guarantees government employees a monthly pension of Rs 10,000 after retirement, provided they have completed a minimum of 10 years of service.
Notably, the assured pension, family pension, and minimum pension will be adjusted for inflation. This means that the payments will include Dearness Relief, which is based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), just like for current government employees.
A lump sum amount will be given at the time of superannuation, in addition to gratuity. Employees will receive 1/10th of their monthly salary (including pay and dearness allowance) for every six months of completed service at the time of retirement. This lump-sum payment will not affect the amount of the guaranteed pension.
The provisions of the UPS will also apply to employees who have already retired under the NPS. Retirees will receive arrears for the previous period, along with interest at the same rate as the Public Provident Fund (PPF). Employee contributions will remain the same, and the government will cover the additional costs for implementing the UPS.
The same framework has been made available for State Governments to adopt. If implemented by the States, it could benefit more than 9 million government employees who are currently enrolled in the NPS.
Vigyan Dhara
The Cabinet, chaired by Prime Minister Narendra Modi has also approved the continuation of three umbrella schemes of the Department of Science and Technology, merged into a unified central sector scheme called 'Vigyan Dhara'.
The proposed outlay for Vigyan Dhara is Rs 10,579 crore during the 15th Finance Commission period from 2021-22 to 2025-26, Union Minister Ashwini Vaishnaw told reporters.
The scheme has three broad components - science and technology institutional and human capacity building; research and development; and innovation, technology development and deployment.
BioE3
The Cabinet also approved the proposal of the ‘BioE3 (Biotechnology for Economy, Environment and Employment) Policy for Fostering High-Performance Biomanufacturing’ of the Department of Biotechnology.
This policy aims to bring innovation-driven support to R&D and entrepreneurship across thematic sectors.
Union Minister Vaishnaw said that the policy would give impetus to technology development and commercialisation by establishing biomanufacturing and bio-AI hubs and bio-foundry.
Along with prioritising regenerative bio-economy models of green growth, this policy would also facilitate the expansion of India’s skilled workforce and provide a surge in job creation, he added.
The government in an official statement said that the policy would further strengthen India’s initiatives such as a ‘Net Zero’ carbon economy and ‘Lifestyle for Environment’ and would steer the country on to a path of accelerated ‘Green Growth’ by promoting a ‘Circular Bioeconomy’.
“The BioE3 Policy will foster and advance a future that is more sustainable, innovative, and responsive to global challenges and lays down the Bio-vision for Viksit Bharat,” the statement read.
(With inputs from PTI)