Cabinet approves Unified Pension Scheme, Centre claims it will benefit 23 lakh government employees
The decision was taken in the backdrop of protests by Opposition parties and trade unions against the New Pension Scheme.
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The Union Cabinet on Saturday approved a Unified Pension Scheme that will apply to about 23 lakh central government employees .
The Cabinet decision was based on the recommendations of a committee under former Finance Secretary and Cabinet Secretary (designate) TV Somanathan that was tasked with reviewing the New Pension Scheme, which faced protests from Opposition parties and several trade unions.
Under the Unified Pension Scheme, employees who worked for a minimum of 25 years will get an assured pension amounting to 50% of their average basic pay in the 12 months before their retirement. The pension for employees who worked for less than 25 years will be proportionate to their tenure, with the minimum benefit being Rs 10,000 per month.
The minimum period of service to be eligible for a pension will be ten years.
The new scheme also provides for a family pension equivalent to 60% of the pension that employees had been getting immediately before their death.
Retired workers will get dearness relief based on the All India Consumer Price Index for Industrial Workers, Union minister Ashwini Vaishnaw said on Saturday at a Cabinet briefing. This means that the pension amount will increase periodically to offset the impact of inflation.
Further, a lump sum payment in addition to gratuity will be made to...
