RSS affiliated BMS welcomes the New Pension Scheme announced by government
Aug 25, 2024
New Delhi [India], August 25 : The Rashtriya Swayamsevak Sangh (RSS)-affiliated organisation, Bharatiya Mazdoor Sangh (BMS), has welcomed the government's efforts to address its concerns regarding the National Pension Scheme (NPS).
For the past 20 years, BMS and its affiliated National Government Employees Council have been pressuring the government through continuous movements to restore the Old Pension Scheme (OPS) and address the shortcomings of the NPS.
The new 'Unified Pension Scheme' (UPS) is a result of these efforts.
BMS had primarily demanded 50 percent of the basic salary as a pension, a provision for inflation relief with the pension, a minimum pension of Rs 10,000, and a non-contributory system.
While several of these features were missing in the NPS, most have now been integrated into the new UPS.
The UPS is a better alternative to the existing NPS as it includes an assured 50 percent pension, inflation relief, a family pension, and an enhanced government contribution.
The government's contribution has been increased from 14 percent to 18.5 percent, along with a lump sum payment upon retirement, bringing it closer to the OPS.
Despite these improvements, BMS points out that some features of the OPS are still missing in the UPS, such as the contributory nature of the UPS, unlike the OPS, where employees did not need to contribute.
Additionally, the absence of the commutation facility available in the OPS has also been noted.
Further, some important features of the OPS still require clarification, such as the ratio of the lump sum payment upon exit, pension revisions under future Pay Commissions, continuity of tax benefits, and pension increments at the ages of 80, 85, 90, 95, and 100 years.
BMS will await the detailed notification of the UPS for these clarifications.
The BMS will decide on its further course of action regarding the UPS after a detailed study of the scheme's features post-notification.
BMS has also requested that the Indian government consider increasing the minimum pension under EPS 95 from Rs 1,000 to Rs 5,000, linking it to the Consumer Price Index, and providing medical benefits under the Ayushman Bharat scheme.
