Does the new Unified Pension Scheme (UPS) rolled out by the Central government lack clarity? The members of the Andhra Pradesh Contributory Pension Scheme Employees’ Association (AP CPSEA) definitely seem to think so. In fact, the Association has refused to accept the UPS and wants to have the Old Pension Scheme (OPS) restored.
As per The Hindu, the AP CPSEA feels that the UPS expects an employee to give up all that they have earned over a 35-40 year service period to the government. The members of the Association feel that the scheme does not benefit the employees unless the government decides not to deduct any contribution from the employees. In fact, the members of AP CSEA find the Central government’s guarantee of pension a sham. Therefore, they wish for the OPS to be restored.
They are also demanding more clarity regarding the form in which the payment would be made to the employees under the UPS.
The National Movement for Old Pension Scheme, which has state government as well as Central government employees as members, does not favour the UPS either. It wants the OPS to be restored as it offered employees a pension equivalent to 50 per cent of their last-drawn salary and dearness allowance (DA) without demanding any contribution from the employees during their tenure. Also, employees became eligible for full pension in 20 years’ time in the OPS as opposed to 25 years under the UPS.
While unions across the country admit that the UPS may be an improvement on the New Pension Scheme (NPS), it is not better than the OPS as it is a contributory scheme.
The Bhartiya Mazdoor Sangh (BMS), affiliated to the Rashtriya Swayamsevak Sangh (RSS), has favoured the UPS, but Central trade unions have rejected the same and are seeking the restoration of the OPS. The BMS has highlighted the fact that the UPS assures 50 per cent pension, dearness relief (DR), family pension, and increased government contribution (from 14 to 18.5 per cent), along with a lump sum payment on retirement. However, the All India Trade Union Congress (AITUC) and Centre of Indian Trade Unions (CITU) have refused to accept the scheme and are in favour of restoring the OPS.
The Chandigarh government has pointed out that UPS does not include paramilitary forces. It also objects to the fact that the minimum pensionable service period has been increased from 20 to 25.
The bank employees unions are also readying to demand the restoration of the OPS under the aegis of the IndianBanks’Association (IBA).
