The Narendra Modi-led Union government has recently greenlit the Unified Pension Scheme (UPS) for government employees, marking a significant shift in pension policy. The scheme guarantees a pension of 50 per cent of the basic salary for those who began their service post-January 1, 2004. This move is seen as a fulfilment of a long-standing demand from government employees, offering an assured pension after 25 years of service.
The approval of the UPS on August 23 has sparked a fresh round of political debate. The Congress party and the ruling Bharatiya Janata Party (BJP) have engaged in a heated exchange over the scheme, reflecting broader political tensions.
Opposition Concerns
Congress President Mallikarjun Kharge has sharply criticised the UPS, claiming that the ‘U’ in Unified Pension Scheme represents the Modi government’s ‘U-turns’. He shared a news clip highlighting the government’s reversal on pensions, linking this to the BJP’s reduced seat count in the June 4 Lok Sabha elections, where the party fell short of a majority.
Kharge has also cited several recent rollbacks by the Modi government, including changes in the budget related to indexation, the Waqf Bill being sent to the Joint Parliamentary Committee, and the reversals on the Broadcast Bill and lateral entry in bureaucracy. These, he argues, underscore the government’s inconsistent policy approach. The timing of the UPS announcement, ahead of key assembly elections in Maharashtra, Haryana, Jammu and Kashmir, and Delhi, adds to the perception of political manoeuvring.
Potential Benefits and Implementation
The UPS is set to benefit around 23 lakh government employees immediately, with potential expansion to 90 lakh if state governments adopt the scheme. The move appears to counter the Old Pension Scheme (OPS) rhetoric used by the Congress, which some believe contributed to its victory in the Himachal Pradesh Assembly elections. However, Congress’s attempt to implement the OPS in Rajasthan did not succeed.
Under the OPS, pensions are calculated as 50 per cent of the last base salary plus dearness allowance (DA). In contrast, the UPS calculates pensions as the average basic salary plus DA drawn in the last year before retirement. The UPS promises a minimum monthly pension of ₹10,000 after ten years of service, an increase from the current ₹9,000.
Criticisms from Opposition and Other Parties
The Congress’s INDIA bloc partner, the Aam Aadmi Party (AAP), has condemned the UPS, calling it a ‘massive fraud’ for excluding paramilitary forces, whose service duration often does not meet the 25-year requirement for full benefits. AAP argues that the UPS is inferior to the New Pension Scheme (NPS) and fails to address the needs of paramilitary personnel.
Pawan Khera from Congress has alleged that the UPS may disadvantage Scheduled Castes, Scheduled Tribes, and Other Backward Classes. He points out that in many states, the upper age limit for government jobs for reserved categories is 40 years, whereas the UPS requires 25 years of service to qualify for full pension, potentially leaving these employees without full benefits.
BJP’s Defence
In response, BJP leaders have defended the UPS and praised PM Modi for his decisive action. Former Union Minister Ravi Shankar Prasad criticised the Congress for its own U-turns, questioning why the party has not implemented the OPS in states where it is in power, as previously promised. He challenged Congress leaders, particularly Rahul Gandhi, to clarify their stance on pension promises.
Conclusion
The UPS has stirred a complex mix of political and policy debates, reflecting its broader implications for government employees and the upcoming elections. As the scheme unfolds, it will be crucial to monitor its impact on the employees it aims to benefit and the political landscape it influences.