Odisha Cabinet Approves Unified Pension Scheme: The Odisha Cabinet, led by Chief Minister Mohan Charan Majhi, has approved the Unified Pension Scheme (UPS) for state government employees, marking a significant step toward financial security for retirees. This new scheme aims to replace the National Pension System (NPS) and offers a guaranteed pension for government employees who have completed a minimum tenure of service.
Alongside this decision, the cabinet has also approved 10 additional proposals, focusing on social security, infrastructure development, and public welfare. These initiatives are expected to enhance the quality of life for government employees and the general public.
Odisha Cabinet Approves Unified Pension Scheme
| Feature | Details |
|---|---|
| Pension Scheme Name | Unified Pension Scheme (UPS) |
| Who Will Benefit? | Government employees under NPS who opt for the new scheme |
| Guaranteed Pension | 50% of last 12 months’ basic pay for 25+ years of service; minimum pension ₹10,000 per month |
| Family Pension | 60% of employee’s pension amount for dependents |
| Inflation Protection | Adjusted with Dearness Relief (DR) based on the Consumer Price Index |
| Lump Sum Benefit | One-tenth of last drawn salary for every completed 6 months of service |
| Scheme Implementation Date | April 1, 2025 |
| Other Cabinet Approvals | Housing schemes, sports infrastructure, and social security initiatives |
| Official Source | Odisha Government |
The Unified Pension Scheme (UPS) marks a significant policy shift in Odisha, ensuring financial security for government employees. The scheme is expected to provide a stable and predictable pension compared to NPS, benefiting thousands of state employees.
Additionally, the 10 other approved proposals, including housing schemes and sports development, will further improve the state’s social infrastructure.
What Is the Unified Pension Scheme (UPS)?
The Unified Pension Scheme (UPS) is a government-backed pension plan designed to provide retirement security for Odisha government employees. Unlike the National Pension System (NPS), which is market-driven and has variable returns, UPS offers a fixed and guaranteed pension.
Key Features of the Unified Pension Scheme
- Guaranteed Pension: Employees with 25+ years of service will receive 50% of their last 12 months’ basic pay as a pension.
- Minimum Pension Amount: Employees completing at least 10 years of service will receive a minimum pension of ₹10,000 per month.
- Family Pension Benefits: In case of an employee’s demise after retirement, 60% of their pension will be provided to their spouse or dependents.
- Inflation Adjustment: Pensions will be adjusted for inflation with Dearness Relief (DR) calculated based on the Consumer Price Index (CPI).
- Lump Sum Retirement Benefit: Upon retirement, employees will receive a one-time benefit equal to one-tenth of their last drawn monthly salary for every completed six months of service.
This new scheme provides a more stable retirement income than the National Pension System (NPS), where returns depend on market fluctuations.
Why Is the Odisha Government Introducing UPS?
The Odisha government’s decision to implement UPS comes after demands from government employees for a more secure pension system. The NPS model was criticized for:
- Lack of guaranteed returns – As NPS is market-based, returns vary, creating financial uncertainty for retirees.
- Inadequate retirement benefits – Many employees found NPS payouts lower than expected.
- No family pension benefits – Unlike UPS, NPS does not offer fixed family pensions after a retiree’s death.
By transitioning to UPS, the government aims to provide social security and financial stability to its workforce.
How Will the UPS Be Implemented?
The Odisha government has outlined a step-by-step implementation plan for the new Unified Pension Scheme:
Implementation Steps
- Cabinet Approval & Policy Finalization – Completed in February 2025.
- Employee Transition Phase – Government employees under NPS will be given the option to shift to UPS.
- Training & Awareness Programs – Workshops will be conducted to educate employees about how UPS differs from NPS.
- Registration & Data Collection – Employees opting for UPS will have to register through the state’s finance department.
- Full Implementation by April 1, 2025 – Pensions will start being disbursed under UPS for eligible retirees.
Government employees currently enrolled in NPS can voluntarily opt-in for the Unified Pension Scheme for better security.
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Other Major Proposals Approved by the Cabinet
Apart from the Unified Pension Scheme, the Odisha Cabinet has approved 10 more proposals, including:
1. Antyodaya Gruha Yojana (Affordable Housing Scheme)
- 2.25 lakh houses to be constructed for economically weaker sections.
- Financial assistance of ₹1.2 lakh per household.
- Bonus of ₹20,000 for early completion.
2. Block-Level Stadiums for Sports Development
- Sports stadiums to be built in all 314 blocks of Odisha.
- ₹4,124 crore budget allocated for the project.
- Aims to boost youth participation in sports.
3. Infrastructure Development Projects
- New highway and road projects to improve connectivity.
- Expansion of rural electrification and water supply schemes.
- Renovation of government schools and hospitals.
These initiatives aim to enhance social welfare and economic development in the state.
FAQs On Odisha Cabinet Approves Unified Pension Scheme
1. Who is eligible for the Unified Pension Scheme (UPS)?
Government employees currently under NPS can opt for UPS if they meet the minimum service requirement.
2. How does UPS differ from NPS?
UPS offers a fixed, guaranteed pension, while NPS is market-linked with variable returns.
3. When will UPS be implemented?
The scheme is set to launch on April 1, 2025.
4. Will employees automatically be shifted to UPS?
No, employees under NPS must voluntarily opt for UPS.
5. What happens if an employee dies after retirement?
The employee’s family will receive 60% of the pension amount as a family pension.
6. How will the government fund UPS?
UPS will be funded through state budget allocations and contributions from the finance department.
