Odisha Government to Implement Unified Pension Scheme for State Employees

Bhubaneswar, Feb 8: In a major decision benefiting state government employees, the Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, has approved the implementation of the Unified Pension Scheme (UPS). This scheme will be applicable to employees currently under the National Pension System (NPS).

Announcing the decision on Saturday, Chief Minister Majhi stated that the Union Cabinet, under the leadership of Prime Minister Narendra Modi, had approved the Unified Pension Scheme on August 24, 2024. Considering the demands of various service organizations and the need for an enhanced pension structure, the Union Government introduced UPS to provide better financial security to retired employees. Odisha will implement the scheme from April 1, 2025.

Key Features of the Unified Pension Scheme (UPS):

• Employees with a minimum qualifying service of 25 years will receive an assured pension amounting to 50% of the average basic pay drawn in the last 12 months before retirement.
• For employees with service periods ranging from 10 to 25 years, pension will be provided on a pro-rata basis.
• A guaranteed family pension of 60% of the employee’s pension will be available in case of their demise.
• A minimum monthly pension of Rs. 10,000 will be ensured for employees with at least 10 years of service.
• Dearness relief will be provided based on the Consumer Price Index to compensate for inflation.
• Retired employees will receive a lump sum benefit, amounting to one-tenth of their last drawn monthly salary for every completed six months of service. This will not affect the guaranteed pension amount.
• Employees under the existing NPS will have the option to either switch to UPS or continue with NPS.
• The guaranteed family pension will be available even after the death of a retired government employee, a benefit not provided under the NPS.

This decision is expected to provide financial stability and security to retired government employees and their families, addressing concerns regarding compulsory pension, family pension, and inflation-linked increments.

The Odisha government’s move to implement UPS is seen as a progressive step towards ensuring social security for state employees and their dependents.