The Unified Pension Scheme (UPS) recently approved by the Modi government has sparked significant reactions across the political spectrum. Delhi government minister Saurabh Bhardwaj, known for his critical stance against the BJP, voiced his thoughts on the development.
According to Bhardwaj, the BJP's decision to introduce the UPS is a sign that the ruling party has finally acknowledged the concerns raised by opposition parties and the public. He believes this acknowledgment might lead to the reversal of other controversial decisions, such as the Agniveer scheme.
Bhardwaj emphasised that the opposition has consistently echoed the sentiments of the people, particularly government employees, who have felt marginalised by the central government's policies.
He pointed out that the overwhelming disapproval from central government employees in recent times may have compelled the BJP to reconsider its stance. The minister suggested that the BJP, after facing strong resistance, has begun to realise the impact of its decisions and might soon retract other unpopular measures.
The newly approved Unified Pension Scheme, set to take effect on April 1, 2025, is seen as a significant shift in the government's approach to pension plans.
This scheme aims to combine the benefits of the old pension scheme (OPS) and the features of the new pension scheme (NPS), which was introduced in 2004.
The OPS, favoured by many, offered a fixed pension based on the last drawn salary, while the NPS was based on defined contributions from both employees and employers, with pension amounts dependent on investment returns.
Under the new UPS, the government seeks to provide the best of both worlds. The scheme guarantees a fixed pension amount, ensuring a predetermined sum that retirees will receive regularly after their service years.
Specifically, central government employees who have served for 25 years or more will receive 50 percent of their last drawn salary, averaged over the past 12 months, as their pension. Moreover, these retirees will also benefit from inflation-linked increments, ensuring that their pension keeps pace with the rising cost of living.
This move by the central government appears to be a response to the persistent demands from various quarters to restore the OPS, which was more predictable and favoured by many employees.
By introducing the UPS, the government aims to strike a balance between the old and new systems, addressing the concerns of both employees and fiscal prudence.
However, Bhardwaj and other opposition leaders see this as a sign of the BJP's weakening resolve. They argue that the ruling party is slowly but surely realising the backlash it faces due to its policies.
The reference to the Agniveer scheme—a controversial military recruitment plan—highlights the broader discontent that exists among various segments of society. Bhardwaj's remarks suggest that the BJP might be on the verge of rolling back more decisions that have faced widespread criticism.
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