Ahead of the upcoming Panchayat elections in Uttarakhand, Chief Minister Pushkar Singh Dhami has announced a significant decision for state employees. The government has decided to implement the Unified Pension Scheme (UPS).
Dehradun: In the run-up to the upcoming Panchayat elections in Uttarakhand, Chief Minister Pushkar Singh Dhami has made a significant announcement affecting state employees. The government has decided to implement the Unified Pension Scheme (UPS), benefiting 100,937 employees. This decision is being viewed as a political masterstroke, as the opposition party has long been demanding the implementation of the Old Pension Scheme (OPS).
Increased Financial Burden on the Government Due to UPS Implementation
The implementation of the Unified Pension Scheme (UPS) will impose an additional burden of ₹492 crore on the state exchequer. However, the government has clarified that this scheme will be voluntary, and employees will have the option to join. The government has decided to offer employees the option to join the UPS from April 1, 2025.
UPS vs. NPS: Understanding the Differences
* Employee Contribution: Under UPS, 10% of the employee's salary will be deducted, similar to NPS.
* Government Contribution: The government's contribution under NPS was 14%, while under UPS, it has been increased to 18.5%.
* Minimum Pension: Under UPS, employees will receive a monthly pension of ₹10,000 after 10 years of service, compared to ₹9,000 under NPS.
* Long Service Benefits: After completing 25 years of service, employees under UPS will receive 50% of their total salary as a pension. They will also receive periodic dearness allowance benefits.
* Family Pension: Under UPS, in the event of an employee's death, the family will receive 60% of the pension.
Number of Employees Affected in Uttarakhand
Currently, 97,019 employees are receiving benefits under the OPS.
100,937 employees currently associated with NPS can now choose the UPS option.
The implementation of UPS will impose an additional monthly burden of ₹41 crore on the government.
Election strategy or employee-centric decision?
Attempt to Cool Down the OPS Issue?
The opposition Congress party has long been demanding the restoration of the Old Pension Scheme (OPS) and was preparing to make it a major election issue. However, with this new initiative, the government appears to be attempting to weaken the opposition's key campaign point. Chief Minister Dhami's announcement comes at a time when Panchayat elections in Uttarakhand are approaching. The government's decision, while potentially offering relief to employees, could also be a strategic move to counter opposition attacks before the elections.
