• Source:IANS
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Maharashtra became the first state to offer the Unified Pension Scheme (UPS) to its employees, just hours after central government employees' organizations urged state governments to adopt the scheme. This move comes as Maharashtra gears up for upcoming elections and sets a precedent that is anticipated to prompt other states, particularly those ruled by the NDA, to consider similar changes.

The move comes on the day Prime Minister Narendra Modi visited the state and interacted with 'Lakhpati Didis' – women members of self-help groups earning Rs 1 lakh annually. The Union Cabinet had approved UPS to offer 50 per cent of an employee's average salary for the last 12 months as pension before the superannuation for a minimum qualifying service of 25 years to address the demands of government employees who joined in 2004 and later.

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The UPS also guarantees an assured minimum pension of Rs 10,000 per month on superannuation after a minimum of 10 years of service. The Centre’s new pension scheme comes ahead of Assembly elections in Haryana, Jharkhand, Jammu and Kashmir, and Maharashtra. 

The scheme aims to benefit 23 lakh central government employees, but this number could expand significantly to 90 lakh if all states adopt the scheme. Union Minister Ashwini Vaishnaw said that under the new pension scheme, the spouse of a deceased employee will be guaranteed a family pension, with provisions for inflation indexation applied to the assured pension, family pension, and minimum pension. 

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Additionally, the scheme will include Dearness Relief linked to the All India Consumer Price Index for Industrial Workers (AICPI-IW), mirroring the benefits provided to serving employees.

The National Pension System (NPS) has been adopted for all government employees joining the central government on or after January 1, 2004, with the exception of those in the armed forces. Additionally, most state and Union Territory governments have also implemented the NPS for their new employees.

Contrary to this, under the Old Pension Scheme (OPS), retired government employees received a monthly pension equivalent to 50 per cent of their final drawn salary.