VIJAYAWADA: South Central Railway (SCR), Vijayawada Divisional Railway Manager (DRM), Narendra A Patil, stated that the Unified Pension Scheme (UPS) is a game-changer for government employees, providing assured pension, inflation-indexed dearness relief and financial security for dependent family members. Around 23 lakh Central government employees will be benefited from the scheme.
Speaking to mediapersons in Vijayawada on Tuesday, he said the UPS, which will come into effect from the next financial year, was framed after extensive consultations with trade unions, the State government, and financial experts.
He noted that the UPS can be opted for by all Central government employees who are subscribers to the New Pension Scheme (NPS). Out of the total 18,000 employees in SCR, 14,000 in the Vijayawada Division will be benefitted.
Sr Divisional Personnel Officer Katta Anand said there is a one-time switch option from NPS to UPS, and once the option is exercised, there is no switching back to NPS. He highlighted that employee contributions remain the same, but the government contribution has been increased from 14% to 18.5%. Anand shared that there will be a lump sum payment in addition to superannuation gratuity, which is another bonus feature of the UPS policy.