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In a significant move, the Maharashtra Cabinet on Sunday approved the central government's Unified Pension Scheme (UPS).
The Unified Pension Scheme was approved by the Modi government on Saturday and is set to take effect on April 1, 2025. Opposition parties had been advocating for the reinstatement of the old pension scheme (OPS), which was replaced by the new pension scheme (NPS) in 2004. The NPS was based on defined contributions by employees and employers, with the funds invested in select portfolios. The pension amount under this scheme was dependent on the returns from these investments. The government asserts that the Unified Pension Scheme combines the advantages of the old pension scheme with the features of the new pension scheme. The UPS includes provisions for a fixed pension amount--a guaranteed and predetermined sum that a retiree will receive regularly after retirement. Under the UPS, all central government employees who have served for 25 years or more will receive 50 per cent of their last drawn salary from the past 12 months as a pension. Additionally, these employees will be eligible for post-retirement inflation-linked increments to their pension amount. (ANI)
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