The government of India intends to extend a Unified Pension Scheme for central government employees under which retired employees may be able to draw 50 percent of the last salary drawn by them as pension to live comfortably post-retirement in a financially secured environment.
What Is The Unified Pension Scheme?
The Unified Pension Scheme is a new policy whereby pension benefits offered to central government employees will become standard. Under the proposed scheme, retirees will receive pension equivalent to 50 percent of their last drawn salary as is available under Old Pension Schemes (OPS). The scheme intends to buttress fears regarding inadequate pension benefits under the National Pension System (NPS).
Key Features Of The Scheme
- 50% Last Salary as Pension: On retiring, a central government employee will earn fifty percent of his last drawn salary as a monthly pension.
- Uniform Pension Benefits: The scheme shall standardize pension provisions across government employees.
- Possibility of the Merger of NPS and OPS: There is discourse about integrating NPS with OPS to have a better pension promise.
- Retirement Provisioning: the scheme aims to provide financial stability to government employees upon their retirement.
## Why is the Government Moving Ahead With This Scheme?
The increased demand among government employees for pension benefits has been observed over time. Most feel that, compared with those retiring under OPS, their pension under NPS is at an unreasonably low level. The Unified Pension Scheme seeks to definitely narrow that gap and promise better retirement benefits.
Who Benefits From The Unified Pension Scheme?
The scheme is meant to benefit, in particular:
- Central government employees retiring under the NPS;
- Employees seeking pension security similar to that of OPS; – Future retirees looking for much higher post-retirement financial stability.
Some Negative Effects From Unified Pension Scheme
- Higher Pension Amount-The present NPS system does not offer the same benefits as this new scheme to employees; under the new scheme, employees will have pension entitlements that are comparatively higher.
- Better Financial Security-It would ensure stable post-retirement income puts off stress from them during their service.
- Betterment of Employee Morale-Government employees will feel more satisfaction with their job because they have better benefits at retirement.
Conclusion
Unified Pension Scheme marks a giant leap toward providing pension security to members of the central government. Provision of 50% of the last drawn salary as pension means much better financial stability for employees after they retire. If executed properly, the scheme can prove to be a game-changer for millions of government employees in India.
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