Congress Takes Aim at Modi's 'U-Turns' Over Unified Pension Scheme

The Congress criticized the Modi government's newly approved Unified Pension Scheme (UPS), claiming it exemplifies the administration's frequent 'U-turns.' The UPS promises a guaranteed pension for government employees, reacting to demands ahead of assembly elections. The scheme replaces the National Pension System to offer assured benefits, but has faced opposition scrutiny.

The Congress on Sunday took a jibe at the Centre over its announcement of the Unified Pension Scheme, saying the 'U' in UPS stands for Modi government's ''U-turns''.

The swipe came a day after the Union Cabinet approved an assured pension of 50 per cent of salary for those who joined service after January 1, 2004, under the National Pension System (NPS).

Fulfilling long pending demands of government employees ahead of assembly elections in Haryana and Jammu and Kashmir, the Cabinet meeting, chaired by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS), which assures guaranteed pensions.

Taking a dig at the government, Congress president Mallikarjun Kharge said, ''The 'U' in UPS stands for Modi Govt's U turns! Post June 4, the people's power has prevailed over the Prime Minister's arrogance.''

''Rollback in the budget regarding Long Term Capital Gain/Indexation. Sending Waqf Bill to JPC. Rollback of Broadcast Bill. Rollback of Lateral Entry,'' Kharge listed as examples.

''We will keep ensuring accountability and protect 140 crore Indians from this despotic government!'' Kharge added in a post on X.

The new pension scheme guarantees an assured minimum pension of Rs 10,000 per month on superannuation after a minimum of 10 years of service, benefitting 23 lakh central government employees, with potential participation from state governments.

Announcing other features of UPS, Union minister Ashwini Vaishnaw mentioned an assured family pension for spouses of deceased employees and inflation indexation on assured pensions.

This marks a transformation of the NPS, which promised pensions based on contributions made by employees and the government.

The announcement responds to several non-BJP states reverting to the DA-linked Old Pension Scheme (OPS) and employee organizations in other states raising similar demands.

NPS has been in place for all government employees, except those in the armed forces, joining the central government after January 1, 2004.

Under the Old Pension Scheme, retired employees received 50 per cent of their last drawn salary, which increased with DA rates, but it is not fiscally sustainable as it is non-contributory.

(With inputs from agencies.)