The Congress Party has expressed joy over the introduction of the Unified Pension Scheme (UPS), which they see as a significant rollback of the previous BJP-led government’s pension reforms. However, the BJP has hit back, questioning Congress’s commitment to their own pension promises.
Ravi Shankar Prasad Criticises Congress
Senior BJP leader Ravi Shankar Prasad challenged Congress to fulfill its election promises, particularly regarding pensions. “I want to ask Rahul Gandhi if his government in Himachal Pradesh has implemented the Old Pension Scheme as promised,” Prasad said. He criticized the Congress for not including pension promises in their Lok Sabha election manifesto, suggesting they make announcements merely to win votes.
New Pension Scheme Guarantees 50% Monthly Pension
The Unified Pension Scheme, set to begin in April 2025, closely resembles the Old Pension Scheme from before 2004. It guarantees government employees 50% of their last drawn basic pay as a lifelong monthly pension. Under the New Pension Scheme introduced by the Atal Bihari Vajpayee government in 2004, pensions were based on contributions from both the employee and the government.
New Scheme Mandates Enhancing Pension Security
The new scheme requires employees to contribute 10% of their salary, while the government will contribute 18.5%, with the possibility of this figure increasing. This scheme aims to provide a more secure pension plan for government employees compared to the New Pension Scheme.
Congress Criticizes UPS, Union Minister Defends Scheme
Congress president Mallikarjun Kharge responded to the UPS announcement with sharp criticism of the Modi government, accusing it of frequently reversing its policies. In a post on X (formerly Twitter), Kharge labeled the UPS as a “U-turn” by the government and listed several other rollbacks he claimed were the result of public pressure. Union Minister Ashwini Vaishnaw defended the UPS, emphasizing that it would provide financial security and dignity for government employees. He noted that the scheme assures a pension of 50% of the average basic pay from the last year of service, with proportional benefits for those who have served for less than 25 years. Family pensions will be 60% of the employee’s pension after their death.
Amit Shah Backs UPS, BJP-Congress Tensions Rise
Home Minister Amit Shah also supported the scheme, congratulating government employees and reaffirming the Modi administration’s commitment to their financial security. He assured that the UPS was not connected to upcoming assembly elections in Jammu and Kashmir or Haryana. The debate over the Unified Pension Scheme highlights ongoing tensions between the BJP and Congress, with both parties using the scheme to bolster their political positions.