This new scheme — which can come into impact from April 1, 2025 — may also be obtainable on an non-compulsory foundation to State Governments for his or her workers, Ashwini Vaishnaw, Union I&B Minister, advised a press convention after the Cupboard assembly right here.
Explaining the options of the UPS, TV Somanathan, Cupboard Secretary-Designate, who was head of the government-appointed panel that went into evaluate of NPS for presidency sector, mentioned newly framed UPS has 5 main advantages — assured pension; assured household pension; assured minimal pension; inflation indexation and lumpsum fee at superannuation along with gratuity and multi function complete bundle.
Somanathan highlighted one of many essential attribute of the UPS is that it can be a totally funded contributory scheme.
“UPS is fiscally extra prudent. It stays in the identical structure of a contributory funded scheme. That is crucial distinction between erstwhile Outdated pension scheme and the brand new UPS. OPS was unfunded non-contributory scheme, whereas UPS is a funded contributory scheme.
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The one distinction within the modifications made right this moment is we’re giving an assurance and never go away issues to vagaries of market forces. In any other case construction of UPS has finest parts of each (OPS and NPS),” Somanathan mentioned.
He mentioned that UPS may also apply for all these authorities workers who’ve already retired underneath Nationwide Pension System (NPS) from 2004 onwards. “ Although new UPS will take impact from April 1, 2025, everyone who has retired from the time of inception of NPS and likewise together with these retiring until March 31, 2025 may also be eligible for all 5 advantages underneath UPS.They are going to get arrears after adjusting for no matter they’ve drawn. Arrears will likely be paid with curiosity at PPF charges”, Somanathan mentioned.
Somanathan famous that as many as 23 lakh central authorities workers can profit from UPS. The rollout of UPS will entail an extra outgo of ₹6,250 crore for the Centre in first yr and arrears of ₹800 crore in first yr.
Vaishnaw mentioned that implementation of UPS would imply Centre’s contribution to the scheme would go up from 14 per cent ( in present NPS) to 18.5 per cent per thirty days. He made it clear authorities workers contribution won’t improve.
The Minister additionally mentioned that as many as 90 lakh State authorities workers can probably profit from UPS if the States decides to modify from NPS to UPS for his or her workers.
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UPS BENEFITS
Based on Vaishnaw, the UPS will present assured pension of fifty pension of the common primary pay drawn over the past 12 months previous to superannuation for a minimal qualifying service of 25 years. The assured pension will likely be proportionate for lesser service interval as much as a minimal of ten years of service.
Assured household pension can be 60 per cent of the pension of the worker instantly earlier than his/her demise. A minimal assured pension of ₹ 10,000 per thirty days can be supplied on superannuation after minimal 10 years of service.
OTHER CABINET DECISIONS
The Cupboard has additionally authorized the Vigyan Dhara scheme with ₹10,579 crore outlay. This can embrace internships for sophistication 11&12 college students, improve in scope of fellowships for UG and PG, PhD, submit physician; push for higher worldwide collaborations, push for joint analysis and fellowships thereby lowering mind drain; focus in areas and initiatives associated to each day life like local weather change.
The scheme may also push for product growth equivalent to growth of fresh tech.
“There will likely be a concerted push in the direction of discount of mind drain. This aside, the scheme will open up extra alternatives for college kids and students, particularly within the discipline of actual life purposes,” Vaishnaw mentioned.
Additionally authorized was the ‘Bio E3’ coverage that may push for gene remedy, use of good proteins & purposeful meals, push for bio-farming and selling carbon dioxide seize tech for bio chemical & bio fuels.
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