INSUBCONTINENT EXCLUSIVE:
Sitharaman also clarified that there will be no change in tax treatment under the UPS
(Photo: PTI)3 min read Last Updated Aug 27 2024 | 11:08 PM IST
Union Finance Minister Nirmala Sitharaman on Tuesday said the Unified
There is no rollback or U-turn by introducing assured pensions under UPS
would be no changes to the tax treatment under UPS.
In a significant enhancement to pension benefits for central government employees, the
Union Cabinet on Saturday approved the UPS, which offers an assured pension of 50 per cent of the average basic pay drawn over the past 12
(GST) Council meeting scheduled for September 9, Sitharaman said rate rationalisation would be on the agenda
year, will benefit over 2.3 million central government employees, according to the government
The pension amount will be proportionate for shorter service periods, down to a minimum of 10 years.
According to the government, the
expenditure for arrears will be Rs 800 crore with an annual cost increase of around Rs 6,250 crore in the first year.
The scheme also
family will receive 60 per cent of the immediate pension upon their demise
The UPS includes an assured minimum pension of Rs 10,000 per month upon superannuation after a minimum of 10 years of service.
In March
2023, the Narendra Modi government had set up a committee led by former finance secretary T V Somanathan to explore ways to enhance pension
benefits under NPS without reverting to the fiscally unsustainable, non-contributory OPS.First Published: Aug 27 2024 | 9:11 PMIST
