‘Restore Old Pension Scheme’
Excelsior Correspondent
JAMMU, Jan 27: Centre of Indian Trade Unions (CITU) denounces the truncated Unified Pension Scheme (UPS) notified on Jan 24, 2025 by Department of Financial Services, Union Ministry of Finance, and demanded restoration of Old Pension Scheme.
A spokesman of the CITU said that as anticipated as per the notification, UPS will be an option within the National Pension System effective from April 1st, 2025. In spite of much orchestrated campaign at the time of announcement of this UPS” as Union Cabinet decision in August 2024, the reality is exposed, as it will not be called pension but is termed as Assured Pay Out or Family Pay Out. It turned out to be utterly deceptive one on many counts.
“1t is funding-based-pension system relying on the regular and timely accumulation and investment of applicable employee and employer contributions. Employee contributes 10% of Pay+DA. Government contributes same 10%. Both will be invested in default investment scheme or as per employee’s option. Government will contribute additional 8.5% of Basic Pay +DA, which is investable as per the option of the Government. The contribution and the returns together are termed as Pool Corpus (PC), the spokesman added.
To avail full benefit of the Scheme employee must authorise to transfer entire Individual Corpus to the Pool Corpus. If the employee had made partial withdrawal during the service he will have to make additional contribution to avail full benefit. The initial announcement of August 2024 after Govt decision that the employee will have an option to withdraw up to 60% and get proportionately less pension has turned out to be another `Jumla’ as same does not find mention in the Notification Jan 24, 2025, he asserted.
He said the employee is eligible for the scheme if he has been superannuated or compulsorily retired as a penalty earlier, with effect from the scheduled date of superannuation. In case the employee wishes to voluntarily retire he can opt only after 25 years of qualifying service. One who has less than 10 years of service is also not eligible for assured pay out. The employee should have 25 years of qualifying service to get 50% of last 12 monthly average Basic Pay.
Family Pay out will be 60% of assured pay out. The protection of minimum pay out of Rs 10000 is not applicable to family pay out. Retirees who retired in NPS are also eligible for UPS and will be paid arrears adjusting the withdrawals and annuities. PFRDA will decide the top up amount to be paid by such retirees.
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