Central Government's Unified Pension Scheme: What is Employee Organizations' Stance?

The central government has announced the launch of a new pension system under the newly named Unified Pension Scheme (UPS). This scheme marks a departure from both the Old Pension Scheme (OPS) and the National Pension System (NPS). The Union Cabinet has already given its approval for the new scheme.

Key Features of the UPS

Under the UPS, government employees who have completed 25 years of service will be eligible for a full pension. Specifically, if an employee has served for at least 25 years, they will receive a pension equivalent to 50 percent of the average salary earned during the last 12 months before retirement. Additionally, employees who have worked for at least 10 years under the UPS will receive a minimum pension of Rs 10,000.

Employee Organizations Express Displeasure

However, the announcement of the UPS has sparked significant discontent among central employee organizations. Representatives from these organizations have accused the government of betraying the workforce. They have unequivocally rejected the UPS, declaring that it will not be accepted under any circumstances. The employees' organizations, which have long been advocating for the restoration of the Old Pension Scheme (OPS), are now gearing up for renewed protests. They plan to soon unveil their future strategy for achieving the guaranteed restoration of OPS.

Criticism from National Mission for Old Pension Scheme India

Dr. Manjit Singh Patel, the National President of the 'National Mission for Old Pension Scheme India,' who has been leading a nationwide movement for the reinstatement of OPS, voiced strong criticism of the government's new scheme. According to Dr. Patel, the government's decision to introduce UPS is a betrayal of employees. While the government has increased its contribution to the UPS from the previous 14 percent to 18.5 percent, which he acknowledges as commendable, he emphasizes that this was not the primary demand of the employees.

Dr. Patel highlighted that the main demand was for employees to receive 50 percent of their basic salary and Dearness Allowance (DA) upon retirement. He also criticized the government's decision to retain the employees' and its own contributions under the UPS, arguing that it would result in employees receiving only the salary of the last six months from their contributions upon retirement. 

In such a scenario, Dr. Patel suggests that the NPS might be preferable to the UPS. He asserts that the movement for OPS will continue as the UPS fails to include any provisions resembling the old pension scheme.

Central Employee Organizations Stand Firm

SB Yadav, General Secretary of the Confederation of Central Government Employees and Workers, a prominent organization representing central employees, also reiterated the collective stance. He made it clear that government employees are solely interested in the OPS and will not accept the UPS under any circumstances. The Confederation plans to hold a meeting soon to discuss the government's new scheme and will announce its future strategy thereafter. The message from the employee organizations is unequivocal: nothing short of OPS will be acceptable.

Boycott of Government Meetings

In a related development, the All India Defense Employees Federation (AIDEF) boycotted a meeting between Prime Minister Modi and representatives of the Joint Consultative Machinery (JCM). The reason for the boycott was the government's refusal to make any positive statements regarding the OPS. The government, steadfast in its position, proceeded with the implementation of the UPS without consulting the employee organizations that have been protesting in favor of the OPS. As a result, renewed agitation appears inevitable.

Demand for OPS Continues

Vijay Kumar Bandhu, National President of the National Movement for Old Pension Scheme (NMOPS) and State President of ATETWA, questioned why the government could offer the option of UPS but not OPS. He argued that if the government could offer 50 percent of the basic salary under the UPS, it could do the same under the OPS. 

Bandhu pointed out that merely changing the name of the scheme does not change its substance, and that these frequent changes in pension schemes only serve to underscore the enduring value of OPS. He said that OPS remains the only true safeguard of social security, providing critical support during old age, and is the preferred choice of millions of employees across the country.