‘UPS worse than NPS’: AAP’s Sanjay Singh calls pension scheme a scam

The Aam Aadmi Party (AAP) has slammed the Unified Pension Scheme (UPS), calling it worse than the National Pension Scheme (NPS). The government, on Saturday, approved an assured 50 per cent of salary pension for 23 lakh government employees who joined the service under the NPS.

AAP leader Sanjay Singh said that the government will continue to cut an amount of employees’ salaries to keep it as a pension fund -- till the employee continues to work. He also criticised the government for capping the years of service to avail the pension at 25 years. Singh said that the paramilitary forces, members of which are able to serve around 20 years, would then be given a meagre pension of Rs 10,000. 

"UPS is worse than NPS. Under this, 10 per cent of the employee's salary will be deducted every month, and then six months' salary from the last 12 months' salary of his service will be given to the employee…A rule of 25 years of service has been made. You need to be in service for 25 years at least to avail pension service. In paramilitary forces, most people retire after 20 years, they will get only Rs 10,000 as pension...If you are saying that UPS is similar to OPS then bring back OPS...UPS is a scam..." he said during a press meeting in Hindi. 

The National Pension System, applicable to employees joining after April 1, 2004, is based on contributions rather than defined benefits. Information and Broadcasting Minister Ashwini Vaishnaw announced that under the UPS, government employees will receive 50 per cent of the average basic pay drawn over the last 12 months before superannuation as pension. To be eligible for this full pension, employees must have a minimum service length of 25 years.

 For those with a service period between 10 to 25 years, the pension will be proportionate. 

NPS subscribers can opt for the UPS, which will be effective from the next financial year. A committee headed by Finance Secretary TV Somanathan was set up last year to review the pension scheme and suggest changes. 

Some non-BJP-ruled states and employee organisations have demanded a return to the DA-linked Old Pension Scheme (OPS). Cabinet Secretary-designate TV Somanathan stated that the new scheme will be applicable from April 1, 2025, and benefits will be provided to those retired and retiring till March 31, 2025, with arrears.