UPS evokes mixed response from unions; BMS supports it, others don't

Don't want to miss the best from Business Standard?

The Centre’s unified pension scheme (UPS) has evoked a mixed response from unions across the country.  

Bhartiya Mazdoor Sangh (BMS), which is affiliated with Rashtriya Swayamsevak Sangh (RSS), has welcomed it, while other central trade unions have rejected the new scheme demanding the restoration of the old pension scheme (OPS). 

In a statement on Sunday, BMS said that the new pension scheme is a better option than the existing NPS as it contains an assured 50 per cent pension, dearness relief, family pension, increased government contribution from 14 to 18.5 per cent and additional lump sum payment on retirement. 

“These features make it close to the OPS. The government has attempted to overcome the shortcomings of NPS and we appreciate them,” said Ravindra Himte, general secretary, BMS.

However, Himte added that there are still some differences as compared to OPS, like UPS is a contributory pension scheme whereas an employee did not contribute anything under OPS and there is a feature of commutation of pension available in OPS which is not available in NPS or UPS. 

“BMS is of the view that some other important features of UPS are still not clear like the ratio of lump-sum payment on exit, revision of pension on future pay commissions. For these clarifications, we have to wait till the publication of detailed notification of UPS,” Himte said, adding BMS will decide its further action in this only after a detailed study of the features of the UPS.

Meanwhile, All India Trade Union Congress (AITUC) and Centre of Indian Trade Unions (CITU) have rejected the scheme and demanded the restoration of OPS. 

“The package offered by the government in the name of UPS reflects the same deceptive ploy of depriving the government employees of their legitimate dues on account of pension,” said Tapan Sen, general secretary, CITU in a statement. 

The AITUC is of the view that UPS does not match the old pension scheme which is basically non-contributory in nature and the UPS is an extension of the existing NPS as the employees will have to continue to contribute 10 per cent of their wages.

“UPS will have a lot of aberrations once implemented. AITUC reiterates its stand to continue to fight for restoring back the non-contributory Old Pension Scheme,” Amarjeet Kaur, general secretary, AITUC said.