BHUBANESWAR: The state government has decided to implement the Unified Pension Scheme (UPS) for its employees, who are considered eligible for pension under the National Pension System (NPS).
The decision was taken at the state cabinet chaired by Chief Minister Mohan Charan Majhi on Friday night. The Union cabinet had approved the UPS on August 24, 2024.
Briefing mediapersons, Chief Minister Mohan Charan Majhi on Saturday said the state cabinet has approved the Finance department’s proposal for the implementation of UPS. However, government employees under NPS will have the choice to opt for UPS or continue under NPS .
He said under the provision of UPS, assured pension of 50 per cent of average basic pay earned in 12 months preceding retirement will be available for employees with at least 25 years of service. A minimum pension of Rs 10,000 per month for employees with at least 10 years of service and assured family pension of 60 per cent of the pensioner’s pension in case of death are the other features of the UPS.
Highlighting the other benefits, Majhi said pensions will be adjusted to keep pace with inflation. In the case of service employees, dearness assistance will be available based on the Consumer Price Index for industrial workers.
After retirement, in addition to gratuity, one-tenth of the monthly salary drawn on the date of retirement for every complete six months will be available as a lump sum. The amount of guaranteed pension will not be reduced due to this amount. In the case of the death of a government employee after retirement, a guaranteed family pension benefit will be available, which was not available in NPS.
Giving an example, Majhi said if a person is appointed as chairman or member of Odisha Public Service Commission (OPSC) and the last pay drawn is more than the pay fixed which is Rs 2.25 lakh per month for chairman and Rs 1.82 lakh per month for member, he/she will be entitled to draw the last pay drawn while in government service minus the gross amount of pension including any portion of such pension which might have been commuted.