Unified Pension Scheme (UPS) - What it means.

Ever since the implementation of the National Pension Scheme (NPS), which is also called as the new pension scheme, the Central Government employees have been fighting for the restoration of the Old Pension Scheme (OPS). They have organised many strikes and other agitations in this connection. It is under these circumstances that, on 24-08-2024, the Union Cabinet has approved another pension scheme called the Unified Pension Scheme (UPS). 

Under the Old Pension Scheme (OPS), importantly, no deduction was made from employees salary every month, towards pension contribution. Further, after retirement, the employee was guaranteed with 50% of the last drawn pay as pension. However, under NPS, 10% of pay was deducted from salary every month, as pension contribution. Further, there was no guarantee for 50% of pay as pension at the time of retirement.

Now, under the UPS also, 10% of pay will continued to be deducted from the salary, as employees' pension contribution. Further, even though it is stated that employee will get 50% assured pension on retirement under UPS, it will be only for those employees who completed 25 years of service. For example an employee who has completed 20 years of service, will get only 40% of pay as pension. In OPS, full pension was paid even for 20 years of service. Moreover, a big injustice is done under UPS in the matter of Family Pension. Family pension will be only 60% of the pension drawn by the pensioner. 60% of 50% means, only 30% of last pay drawn will be paid as Family Pension. Under OPS,  pension will be revised after every 10 years. But, under UPS no such provision is there for pension revision.