Unified Pension System: Reversal of pension reform should have been avoided

The new modified pension scheme is better than OPS, but switching to NPS was one of the biggest reforms in recent decades and would have benefited the country in the long run

Last week, the Union Cabinet approved a new pension scheme for government employees, called the Unified Pension Scheme (UPS), which will come into effect on April 1, 2025. This will benefit government employees who joined after January 1, 2004, and are part of the New Pension System (NPS). Under the UPS, a central government employee will get an assured pension worth 50 per cent of the average basic pay drawn over the last 12 months’ service, provided the employee has served for at least 25 years. This will be lower for employees with fewer years served but