UPS - clarification needed.

 UPS - clarification needed.

Unified Pension Scheme 

| Central trade unions await notification for clarity on details Published / Updated 

THE HINDU BUREAU

Even those who welcomed the Unified Pension Scheme bemoaned the fact that the UPS, unlike the old pension scheme, requires the employee to contribute 10% of her salary to the scheme’s fund. Sangh-affiliated BMS seeks clarity on exit payout ratio, future Pay Commissions’ impact, fate of tax benefits, and hikes for oldest retirees; Left unions say ‘market gambling’ with funds will continueCentral trade unions offered a mixed response to the Unified Pension Scheme, with most saying they are awaiting the notification for clarity on the new scheme’s details, including on the ratio of the lumpsum payment at retirement, future revisions, and tax benefits. However, even those who welcomed the scheme bemoaned the fact that the UPS, unlike the old pension scheme (OPS), requires the employee to contribute 10% of her salary to the scheme’s fund.Also Read: Maharashtra approves Unified pension scheme for its employees. Shiv Gopal Mishra, secretary of the Joint Consultative Machinery (JCM) set up for conciliatory purposes between the government and its employees, welcomed the UPS. He told reporters in New Delhi on Sunday (August 25, 2024) that the decision would have retrospective effect, meaning that those who joined after January 1, 2004 and retired under the NPS will now be eligible for UPS benefits. With Unified Pension Scheme, BJP-led government seeks to trip an important Opposition plank“Thousands of retired employees will get the revised pension under the UPS... The decision to give 60% pension to the family members of deceased pensioners and a minimum pension of ₹10,000 linked to inflation is also welcome,” Mr. Mishra said. “The only issue is that UPS is contributory, as is the NPS. Otherwise, 90% of the provisions under the OPS are there under the UPS,” he said.‘

Need clarity’The Bharatiya Mazdoor Sangh, a trade union affiliated to the Sangh Parivar, also welcomed the decision, with BMS general secretary Ravindra Himte saying that the Union government had attempted to overcome the shortcomings of the NPS through the UPS. He noted that there are still some differences from the OPS, including that the UPS is a contributory pension scheme, whereas an employee did not have to contribute anything under the OPS.“The feature of commutation of pension was available in OPS, not in NPS/UPS. However, some other important features of UPS are still not clear, such as ratio of lump-sum payment on exit; revision of pension by future Pay Commissions; continuation of tax benefits; increase in pension on completion of 80, 85, 90, 95 and 100 years. For these clarifications, we have to wait till the publication of detailed notification of UPS,” he said. He also requested the government to consider the enhancement of the minimum pension under the Employees Pension Scheme-95 of the Provident Fund from ₹1,000 to ₹5,000, and link it to the Consumer Price Index.

‘Market gambling’

The central trade unions in the Opposition camp opposed the UPS. The Hind Mazdoor Sabha, of which Mr. Mishra is the vice president, said the new scheme is meant to hoodwink the employees. “If MPs and MLAs will get pension without any contribution, why is the Centre denying it to its employees,” asked HMS general secretary Harbhajan Singh Siddhu. “We will continue to demand restoration of OPS,” he told The Hindu.Similarly, the leftist unions CITU and AITUC also questioned the UPS. 

“The Modi-led NDA Government with its neoliberal pursuit of safeguarding the interests of speculative crony capital has come with this UPS with some modification of benefits with additional contribution of 4.5% from the government only to further its investment of pension funds of ₹10,53,850 crore called assets under management (AUM) of total 99,77,165 employees under NPS as on July 31, 2024 in the share market,” said CITU general secretary Tapan Sen.AITUC general secretary Amarjeet Kaur said the market gambling in the UPS will continue, claiming that the Union government wants to invest the ₹6 lakh crore accumulated with the NPS Fund in the market. “If the Modi government is really concerned about the protection of the old aged government employees, it should have increased its contribution to 28.5% from the 18.5% announced under the UPS and the taking the 10% of the employees contribution too. This would have right away restored the OPS instead of the gimmicks of introducing another scheme,” Ms.A.arjit  Kaur said

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