New Delhi: The central government is contemplating on introducing a Universal Pension Scheme, which would be voluntary and contributory. If it is implemented, it would enable Indian citizens to receive a pension by contributing a fixed amount in this scheme. The objective of this scheme will be to provide social security to everyone. The Ministry of Labor and Employment has started discussions on the Umbrella Pension Scheme, a report stated.
ET quoted a senior government official saying that the pension scheme will be voluntary and contributory. This pension scheme will not be linked to employment and hence everyone can contribute to it and receive pension.
Sources informed that the work is being done on the broad outline of the scheme under the Employees Provident Fund Organization (EPFO). The Labour ministry will hold talks with stakeholders to solidify the plan. Existing pension schemes can be merged under the Universal Pension Scheme. These include the Prime Minister-Shram Yogi Maandhan Yojana (PMSYM) and the National Pension Scheme for Traders and Self-Employed (NPS-Traders).
On August 24, 2204, the Union Cabinet, chaired by the Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS) for the central government employees. The pension scheme would significantly enhance the pension benefits for 23 lakh central government employees.
Assured pension: 50 per cent of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service.
Assured family pension: @60% of pension of the employee immediately before her/his demise.
Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.
