The Crossbill Team
The Union Cabinet on Saturday (August 24) approved the Unified Pension Scheme (UPS), which is set to come into effect on April 1, 2025.
The scheme aims to provide assured pension, family pension, and minimum pension for government employees. Under the UPS, the government has guaranteed a pension amounting to 50 percent of the salary for government employees.
Under the new scheme, government employees will be eligible to receive a pension amounting to 50 percent of their average basic pay over the last 12 months prior to retirement, provided they have completed a minimum qualifying service of 25 years.
For the assured family pension, 60 percent of the employee's pension can be drawn immediately by the family before the employee’s demise.
Additionally, for the assured minimum pension, government employees will receive Rs 10,000 per month upon retirement, given they have completed a minimum service of 10 years.
The Cabinet also approved the continuation of three umbrella schemes, which will be merged into a unified central sector scheme named ‘Vigyan Dhara’ under the Department of Science and Technology (DST). The proposed outlay for implementing the unified scheme ‘Vigyan Dhara’ is Rs 10,579.84 crore for the 15th Finance Commission period, spanning from 2021-22 to 2025-26.
The Centre further approved the ‘BioE3 (Biotechnology for Economy, Environment, and Employment) Policy for Fostering High Performance Biomanufacturing’ proposed by the Department of Biotechnology. The policy features innovation-driven support for R&D and entrepreneurship across various thematic sectors.
Last year, a committee chaired by Finance Secretary T.V. Somanathan was established to review the pension scheme for government employees and recommend changes based on the current framework and structure of the National Pension System.
The committee was formed by the finance ministry following moves by several non-BJP-ruled states to revert to the Old Pension Scheme (OPS) and calls from employee organizations for the same.
Under the OPS, retired government employees receive 50 percent of their last-drawn salary as a monthly pension, which increases with adjustments in the Dearness Allowance (DA) rates.
The scheme aims to provide assured pension, family pension, and minimum pension for government employees. Under the UPS, the government has guaranteed a pension amounting to 50 percent of the salary for government employees.
Under the new scheme, government employees will be eligible to receive a pension amounting to 50 percent of their average basic pay over the last 12 months prior to retirement, provided they have completed a minimum qualifying service of 25 years.
For the assured family pension, 60 percent of the employee's pension can be drawn immediately by the family before the employee’s demise.
Additionally, for the assured minimum pension, government employees will receive Rs 10,000 per month upon retirement, given they have completed a minimum service of 10 years.
The Cabinet also approved the continuation of three umbrella schemes, which will be merged into a unified central sector scheme named ‘Vigyan Dhara’ under the Department of Science and Technology (DST). The proposed outlay for implementing the unified scheme ‘Vigyan Dhara’ is Rs 10,579.84 crore for the 15th Finance Commission period, spanning from 2021-22 to 2025-26.
The Centre further approved the ‘BioE3 (Biotechnology for Economy, Environment, and Employment) Policy for Fostering High Performance Biomanufacturing’ proposed by the Department of Biotechnology. The policy features innovation-driven support for R&D and entrepreneurship across various thematic sectors.
Last year, a committee chaired by Finance Secretary T.V. Somanathan was established to review the pension scheme for government employees and recommend changes based on the current framework and structure of the National Pension System.
The committee was formed by the finance ministry following moves by several non-BJP-ruled states to revert to the Old Pension Scheme (OPS) and calls from employee organizations for the same.
Under the OPS, retired government employees receive 50 percent of their last-drawn salary as a monthly pension, which increases with adjustments in the Dearness Allowance (DA) rates.
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