Unified Pension Scheme: Maharashtra Becomes First State To Adopt UPS Ahead Of Assembly Polls; Details

Pension Scheme: In less than 24 hours of PM-Modi-led cabinet introducing the Unified Pension Scheme (UPS), Maharashtra becomes the first state to adopt this new pension scheme for its employees. The Maharashtra government's move comes a few hours after employee unions demanded states implement the newly launched UPS, which is an alternative to NPS, and offers assured pensions including family pensions.

The new UPS will come into effect from March in Maharashtra.

Also, the new scheme is being adopted ahead of the Legislative Assembly election that will be held in Maharashtra in October 2024. In the assembly poll, the rivalry will take place for 288 seats, out of which, 145 seats are required as majority to win.

As per reports, UPS in Maharashtra will benefit some over 13.5 lakh employees which is likely to belong in the category of recognised and grant-aided educational institutions, non-agricultural universities and their affiliated aided non-government colleges, agricultural universities, along with employees in zilla parishad.

It is reported that about 99% of subscribers of the national pension scheme (NPS) will find it easy to shift to UP.

All over India, for central government employees, the Unified Pension Scheme (UPS) will come into effect from April 1, 2025. Some 23 lakh central governments and 90 lakh state governments are likely to benefit from the newly launched Unified Pension Scheme (UPS).

Salient Features of UPS as per the Cabinet are:

- Assured pension: 50% of the average basic pay drawn over the last 12 months before superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for a lesser service period up to a minimum of 10 years of service.

- Assured family pension: @60% of the pension of the employee immediately before her/his demise.

- Assured minimum pension: @10,000 per month on superannuation after a minimum of 10 years of service.

- Inflation indexation: on assured pension, on assured family pension and assured minimum pension

Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) as in the case of service employees

- lump sum payment at superannuation in addition to gratuity

1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service this payment will not reduce the quantum of assured pension.

On the day of the launch, on August 24, PM Narendra Modi through his X handler said, "We are proud of the hard work of all government employees who contribute significantly to national progress. The Unified Pension Scheme ensures dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future."

According to Union Minister Ashwini Vaishnaw, the introduction of the UPS is a pivotal step in addressing the concerns of government employees who have been demanding a return to the OPS. The UPS ensures that government employees have a guaranteed pension option while still allowing for the flexibility of the NPS.

For employees of Central Autonomous Bodies, State Governments, and State Autonomous Bodies, the NPS remains the mandatory option. However, these employees will now have the option to switch to UPS if they meet the eligibility criteria.