At present, many types of pension schemes are running in India. From April 1, 2025, a new scheme will also come, which is being called the Unified Pension Scheme (UPS). Before this, the New Pension System (NPS) is also running. Many retired employees are getting old pension schemes and will continue to get them for the next few years. Not only this, the Employee Pension Scheme (EPS) is also a different type of pension scheme. Now the problem is that the framework for all these pension schemes is different. How would it be if there is a common regulatory and supervisory framework for all pension schemes? If this happens, it will solve many problems simultaneously and the good thing is that the government is working in this direction. Apart from this, good news is also coming the government is also considering bringing a Universal Pension Scheme so that every citizen can get financial security in old age. Under this scheme, it is being considered to provide pension benefits to all types of employees (government, private, organized, and unorganized sectors).

According to a report by Moneycontrol. The Government of India is working on a uniform regulatory and supervisory framework to strengthen and improve the pension system. Under this, along with integrating various retirement financing schemes, an effective system of grievance redressal will also be developed.

Why is there a need for change in the pension system?

At present, India's pension system is quite scattered, with different regulators for different schemes. This limits the impact of pension schemes and many people are left out of its scope.

National Pension System (NPS): It is a voluntary scheme, which means that anyone can contribute to it at their own will.

Employee Pension Scheme (EPS): This scheme comes under the Employees Provident Fund Organization (EPFO), but only employees earning up to ₹ 15,000 per month can join it.

A large number of employees, especially those working in the unorganized sector, do not come under any pension scheme. There is a scheme like Atal Pension Yojana for them, but there are a lot of ifs and buts in it. Many types of conditions apply.

What is the new proposal of the government?

The government is planning to create a forum that will set uniform rules and guidelines for all pension schemes. The objective of this forum will be to bring uniformity in the rules of pension schemes and to coordinate between various regulators.

The second objective is to make the Grievance Redressal Mechanism effective so that the problems of pensioners can be resolved quickly. Also, the government wants new pension schemes should move forward and more people can benefit from them.

One benefit of integrating the existing schemes will be that the administrative burden of the government will be reduced and the work will be expedited. It would be better to prepare a uniform reporting format. This will make data management easier for regulators and the government.

Finance Minister Nirmala Sitharaman had announced the formation of a Regulatory Coordination Forum related to pension in her budget speech. This forum will not only develop new pension products, but will also help in making the market more organized and effective.

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