The Assam government has made a major announcement for its employees. The state has adopted the Unified Pension Scheme (UPS) and increased the government contribution to 18.5%.
Add informalnewz.com as a Preferred Source
New Delhi. The Assam government has announced the implementation of the Unified Pension Scheme (UPS), a major step for its employees. Chief Minister Himanta Biswa Sarma stated on Monday that this scheme is part of the new pension scheme recently introduced by the central government. Under this new scheme, the state government’s share has been increased from 10% to 18.5%. Thousands of government employees in the state will directly benefit from this.
Employees Get New Freedom of Choice
Chief Minister Sarma stated that current government employees will be given a one-year window to choose between remaining in the old National Pension Scheme (NPS) or adopting the new UPS scheme. If an employee chooses UPS, their previously accumulated NPS funds will automatically be transferred to the new scheme. Sarma stated that this move will put an end to the ongoing debate between NPS and OPS.
Unlike the old one, the new scheme offers greater security.
Under the UPS, employees will be required to contribute 10 percent of their salary and dearness allowance, while the government will now contribute 18.5 percent. This scheme will apply to employees recruited after January 1, 2004, who now opt for the UPS. While the Old Pension Scheme (OPS) provided employees with 50 percent of their last basic salary as pension, the UPS system is contribution-based, ensuring a more stable pension fund in the future.
Assam linked to the national framework, setting an example for other states
With the adoption of UPS, Assam has now become one of the first states in the country to link its pension policy to the national framework. Experts believe that this decision will slightly increase the financial burden on the state government, but will prove to be a major step towards long-term financial security and stability for employees. Himanta Biswa Sarma said that this decision will strengthen the future of Assam’s employees and give the state a new direction.
