Will the revamped pension scheme help BJP steal a march over the Opposition ahead of state polls?
The return to fixed pension payments with increased government contribution signals the changed political winds.
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The Union government on August 24 announced a revamped pension regime for central government employees with a fixed monthly pension and guaranteed minimum payment.
The Union Cabinet approved the Unified Pension Scheme, which will come into effect on April 1, 2025.
With this, the Narendra Modi-led National Democratic Alliance has taken away a major talking point of the Opposition parties ahead of assembly elections in three states and mollified simmering anger among government employees.
State elections will be held in Haryana and the Union Territory of Jammu and Kashmir in September and October. Maharashtra and Jharkhand elections will likely follow.
Finance Secretary TV Somanathan said on Saturday that the revamped scheme will benefit 23 lakh Central government employees and that states can also implement the model. “If state employees also join this, then this is expected to benefit 90 lakh employees,” he said.
The New Pension Scheme is currently applicable for all government employees who joined service on or after January 1, 2004. A major point of contention with the New Pension Scheme was that pension payments are linked to contributions made from the salaries of employees and by the government.
Under the Old Pension Scheme, government employees received a fixed pension of half their salaries at retirement. The switch to the New Pension...
