Odisha government announces Unified Pension Scheme:- In a significant policy shift, Odisha Chief Minister Mohan Charan Majhi has announced that state government employees will now be covered under the Unified Pension Scheme (UPS) instead of the existing National Pension System (NPS).
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This move aims to provide enhanced financial security and retirement benefits to government employees.
Odisha government announces Unified Pension Scheme 2025
The UPS system will come into effect from April 1, 2025, and will be available to all state employees who were previously covered under NPS. However, employees will have the option to either switch to UPS or continue with NPS, based on their individual preference.
This decision follows the Union Cabinet’s resolution on August 24, 2024, to implement the Unified Pension Scheme for central government employees. Inspired by this move, the Odisha government has decided to extend similar benefits to its state employees.
Who is Eligible for UPS Odisha?
- All state government employees currently enrolled in NPS
- Employees will have the option to either switch to UPS or continue with NPS
- Applicable from: April 1, 2025
- With inflation-adjusted pension benefits, family security, and guaranteed payouts, Odisha’s Unified Pension Scheme (UPS) aims to transform the retirement experience for thousands of government employees.
- This landmark decision positions Odisha as a pioneer in pension reforms, offering greater financial stability and security to its workforce.
Key Features of the Unified Pension Scheme Odisha (UPS)
- Guaranteed Pension Benefits: Employees completing a minimum qualifying service period of 25 years will receive a pension equal to 50% of the average basic salary drawn in the last 12 months before retirement.
- Proportional Pension: Employees with a minimum of 10 years of service but less than 25 years will receive a proportional pension based on their service duration.
- Minimum Monthly Pension: After retirement, employees completing at least 10 years of service will be eligible for a minimum guaranteed pension of ₹10,000 per month.
- Guaranteed Family Pension: In the event of the employee’s demise after retirement, the family will receive 60% of the pension amount that the employee was entitled to before their passing. This family pension feature was not available under NPS.
- Inflation-Linked Adjustments: The pension, family pension, and minimum guaranteed pension will be adjusted for inflation. The Dearness Allowance (DA) will also be provided based on the Consumer Price Index (CPI) for industrial workers.
- Lump-Sum Retirement Benefit: Upon retirement, employees will receive a gratuity along with a one-time lump sum amount equivalent to one-tenth of their monthly salary for every six months of service completed.
- No Reduction in Pension: The guaranteed pension amount will not be reduced due to the lump sum retirement benefit, ensuring employees receive full financial security.
This shift from NPS to UPS is expected to significantly benefit thousands of government employees in Odisha, providing them with a stable, inflation-adjusted, and guaranteed pension system.
The decision was officially confirmed by the Chief Minister’s Office (CMO) on Friday, following a cabinet meeting chaired by CM Mohan Charan Majhi.
With the implementation of UPS in Odisha, the state becomes one of the early adopters of this new pension model, ensuring greater financial security for its workforce. This move is expected to boost employee confidence, retirement planning, and social welfare for government workers across the state.
- Effective Date: April 1, 2025
- Eligibility: All state government employees currently under NPS
- Opt-In Choice: Employees can choose between NPS or UPS based on their preference
With improved pension guarantees, family security, and inflation protection, the Unified Pension Scheme promises a more secure and stable future for government employees in Odisha.
Please note that the information provided in this article is primarily sourced from the internet. While every effort has been made to ensure its accuracy, we cannot guarantee the absolute correctness of the details. For comprehensive and definitive information, we strongly recommend visiting the official website for the most up-to-date and reliable details.
