In a major move for its employees, the Assam government has announced the implementation of the Unified Pension Scheme (UPS). Chief Minister Himanta Biswa Sarma stated on Monday that this scheme is part of the new pension system recently introduced by the central government. Under this new scheme, the state government’s share has been increased from 10% to 18.5%. Thousands of state government employees will directly benefit from this.
Chief Minister Sarma stated that current government employees will be given a one-year window in which they can either remain in the old National Pension Scheme (NPS) or adopt the new UPS scheme. If an employee chooses UPS, their previously accumulated.
What will be the differences?
NPS funds will automatically be transferred to the new scheme. Sarma stated that this move will put an end to the ongoing debate between NPS and OPS. Unlike the old one, the new scheme offers more security.
In UPS, employees will have to contribute 10 per cent of their salary and dearness allowance, while the government will now contribute 18.5 per cent. This scheme will be applicable to employees recruited after January 1, 2004, who now opt for UPS. While in the Old Pension Scheme (OPS), employees used to get 50 per cent of their last basic salary as pension, in UPS this system is contribution-based, which will make the pension fund more stable in the future.
Significant decision by the Assam Government
With the adoption of UPS, Assam has now joined the ranks of the first states in the country to link its pension policy to the national framework. Experts believe that while this decision will slightly increase the financial burden on the state government, it will prove to be a major step towards long-term financial security and stability for employees. Himanta Biswa Sarma said that this decision will strengthen the future of Assam’s employees and give a new direction to the state.