Union minister Ashwini Vaishnaw said,”Government employees have demanded some changes in the New Pension Schemes. For this, PM Modi constituted a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organisations and nearly all the states.”

Unlike the opposition, Prime Minister Modi believes in extensive consultations. Following extended consultations with everyone, including the Reserve Bank of India and the World Bank, the committee recommended a Unified Pension Scheme.

‘50% assured pension is first pillar of scheme’: Vaishnaw

“A 50% assured pension is the first pillar of the scheme…second pillar will be assured family pension…About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS)…There will be an option for the employees to opt between NPS and UPS,” ANI quoted the minister as saying.

Explaining the provisions of the scheme, Vaishnaw said,”The Unified Pension Scheme has five pillars. The (government) employees wanted an assured amount, which was a logical requirement. Thus, 50 per cent assured pension is the first pillar of the UPS. This amount will be the average of basic pay of 12 months before superannuation. If someone has worked for 25 years, then that person will get this assured pension amount.”