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The Bharatiya Mazdoor Sangh (BMS), an influential trade union affiliated with the Rashtriya Swayamsevak Sangh (RSS), has thrown its support behind the government's newly introduced Unified Pension Scheme (UPS). This endorsement comes after decades of advocacy by BMS and its National Government Employees Council for the restoration of the Old Pension Scheme (OPS) and modifications to the existing National Pension Scheme (NPS).
The UPS, designed to address concerns over the NPS, incorporates several key features previously championed by BMS. These include a guaranteed pension of 50 percent of the basic salary, provisions for inflation relief, a minimum pension of Rs 10,000, and an enhanced government contribution. Notably, the government's contribution has been increased to 18.5 percent from the previous 14 percent, bringing the scheme closer to the OPS structure. The promise of a lump sum payment upon retirement further enhances its resemblance to the OPS.
While welcoming the UPS's progress, BMS acknowledges that certain aspects of the OPS are still missing. A key difference is that the UPS requires employee contributions, unlike the non-contributory OPS. The UPS also lacks the commutation facility available under the OPS. Furthermore, BMS has identified areas requiring clarification, such as the specifics of the lump sum payment, pension revisions under future Pay Commissions, the continuity of tax benefits, and pension increments at various advanced ages. The union awaits further details regarding these aspects of the UPS before making its final assessment.
In addition to its focus on the UPS, BMS has also urged the government to increase the minimum pension under the Employees' Pension Scheme (EPS) 95 from Rs 1,000 to Rs 5,000. They are advocating for this pension to be linked to the Consumer Price Index and for the extension of medical benefits under the Ayushman Bharat scheme to EPS beneficiaries.
Source: Unified Pension Scheme: Bharatiya Mazdoor Sangh endorses govt's new Unified Pension Scheme