The National Pension System applies to government employees who commenced their service after April 1, 2004.
New Delhi: On Saturday, government employees celebrated the decision to grant them assured pensions and expressed their gratitude to Prime Minister Narendra Modi for discussing the matter with them. Shiv Gopal Mishra, the Secretary of the Joint Consultative Machinery (JCM), which represents various government employees’ organizations, mentioned that they received an invitation from the prime minister for this discussion.
“This was for the first time that JCM was invited by the PM. It was a very good meeting. It was a very proud moment for 32 lakh government employees,” he told reporters here.
After the meeting, the prime minister posted on X: “Met a delegation of staff side from the Joint Consultative Machinery for Central Government employees. They expressed joy on the Cabinet’s decision regarding the Unified Pension Scheme.”
Met a delegation of staff side from the Joint Consultative Machinery for Central Government employees. They expressed joy on the Cabinet’s decision regarding the Unified Pension Scheme. pic.twitter.com/kRNqpPgDXe
— Narendra Modi (@narendramodi) August 24, 2024
Mishra’s comments followed the Union Cabinet’s approval of a guaranteed pension at 50% of the salary for 23 lakh government employees enrolled under the National Pension System (NPS).
“It was a very courteous meeting with the prime minister. He talked about the assured pension scheme for those employees who joined the service after 2004. So far, their pension was dependent on stock market and market speculations,” he added.
Mishra said that from now on, employees will get half of their last salary on retirement, besides DA benefits. “We were told that the family pension will be 60 per cent plus the DA. There has been talk of a minimum pension of Rs 10,000,” he said.
Mishra said the prime minister has taken cognisance of the employees’ agitation and called them for discussions. “He has also assured that the government will bring welfare schemes in the future too,” the JCM secretary said.
The National Pension System applies to government employees who commenced their service after April 1, 2004. It operates on a contributory basis, unlike the defined benefit system that was in place for employees before the introduction of NPS.
“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,” Modi said in a post on X.
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.…
— Narendra Modi (@narendramodi) August 24, 2024
Announcing Cabinet decisions, Union Information and Broadcasting Minister Ashwini Vaishnaw stated that under the Unified Pension Scheme (UPS), government employees will now be entitled to receive 50 percent of the average basic pay calculated over the last 12 months preceding retirement as their pension.
For this full pension or 50 per cent of pay as the pension, he said, the eligibility service length will be 25 years.
However, he said, it would be proportionate for a lesser service period up to a minimum of 10 years of service. NPS subscribers can now opt for the Unified Pension Scheme (UPS), which offers assured pension applicable from the beginning of the next financial year.
(With PTI inputs)