Uttarakhand Approves Unified Pension Scheme | 05 Mar 2025
Why in News?
The Uttarakhand Cabinet, under the leadership of Chief Minister Pushkar Singh Dhami, has approved the implementation of the Unified Pension Scheme (UPS), and New Excise Policy 2025.
- The government has also announced financial assistance for 45 writers to promote literature and culture.
Key Points
- Unified Pension Scheme (UPS) Approval:
- The Uttarakhand Cabinet approved the implementation of the Unified Pension Scheme (UPS) for officers and employees under the National Pension System (NPS).
- The scheme aims to provide assured pension payouts post-retirement.
- It will come into effect from 1st April, 2025.
- New Excise Policy 2025
- Liquor licenses near religious places will be closed to respect religious sentiments.
- Stricter control will be imposed on liquor sales, considering public sensitivities.
- Sub-shops and the metro liquor sales system have been abolished.
- If a shop sells liquor above the Maximum Retail Price (MRP), its license may be canceled.
- The excise revenue target for 2025-26 has been set at Rs 5,060 crore.
- In 2023-24, revenue of Rs 4,038.69 crore was earned against a target of Rs 4,000 crore.
- In 2024-25, Rs 4,000 crore has been received so far against a target of Rs 4,439 crore.
- Promotion of Literature and Culture
- The government has announced financial assistance for 45 writers this year.
- 21 new literary awards, along with the Uttarakhand Sahitya Bhushan award, have been introduced.
- The initiative underscores the government’s commitment to preserving literature and culture.
- Chief Minister Dhami emphasized that this financial aid is symbolic of the state's dedication to cultural preservation and literary growth.
Unified Pension Scheme
- Assured Pension: This would amount to 50% of the employee’s average basic pay drawn over the last 12 months before retirement for a minimum qualifying service of 25 years.
- The amount would proportionately go down for a smaller service period, up to a minimum of 10 years of service.
- Assured Minimum Pension: In the case of retirement after a minimum 10 years of service, the UPS provides for an assured minimum pension of Rs 10,000 per month.
- Assured Family Pension: Upon a retiree’s death, their immediate family would be eligible for 60% of the pension last drawn by the retiree.
- Inflation Indexation: Dearness relief will be available on the above mentioned three kinds of pensions.
- Indexation will be calculated based on the All India Consumer Price Index for Industrial Workers.
- Lump Sum Payment at Retirement: In addition to gratuity, employees will receive a lump sum payment at retirement equivalent to 1/10th of their monthly emoluments (pay+DA) as of the retirement date for every completed six months of service.
- This payment will not affect the amount of the assured pension.
- Gratuity is an amount paid by an employer to its employees for rendering their services.
- Choice for Employees: The employees can still opt to remain under the NPS. However, an employee can only opt for once. once opted, the option can not be changed.