UPS vs NPS vs OPS: Debate rages on pros & cons of pension schemes for state staff

Lucknow: A debate rages among state government employees about advantages and disadvantages of the Unified Pension Scheme (UPS) vis-a-vis the New Pension Scheme (NPS) and the Old Pension Scheme (OPS) in Uttar Pradesh.
Opinion appears to be divided on the matter amid indications that the state government will also implement the UPS in the same format that the Union government may follow.
Though many of them consider UPS a bit better than NPS, they remain in favour of the demand for implementing the OPS which was in effect till 2004. Besides having the provision for contribution by the employees, the UPS lacks the facility of revision as has been the case with the OPS.
“The aspect of social security remains missing in UPS. The newcomers to government jobs know what the advantages or the disadvantages (are) and there is no enthusiasm about UPS,” said Arjun Dev Bharti, president of the Uttar Pradesh Sachivalaya Sangh, on the phone. He said UPS remains market linked, which does not work in the interest of the employees.
Some others are waiting for the Union government’s notification about the UPS. They say the demand for OPS will continue even if the state government goes ahead with the implementation of UPS in the coming months. Though various aspects of the Unified Pension Scheme (to be implemented w. e. f. 1 April 2025) are in the public domain, there appears no clarity about the eligibility factor, whether the UPS will cover all those under the NPS or will it be for those who join service post April 1, 2025.
“UPS is being discussed in almost all government offices. We are getting 20 to 25 calls every day from different districts to find out more about the UPS. We are in favour of OPS as the contribution factor in UPS is turning out to be a big disadvantage,” said JN Tiwari, president of Uttar Pradesh State Joint Employees Council.
“Employees will contribute 10 per cent of their salary to their pension, like the NPS, with the government contributing 18.5 per cent. This shift distributes the financial responsibility, a departure from the OPS’s no contribution model,” he said.
Hari Kishor Tiwari, president of another faction of the UP State Joint Employees’ Council, also expressed the same sentiments.
“About 80 per cent of our concern has been taken care of in the UPS. We will take a call about other concerns once the Union government issues a notification in this regard,” Hari Kishor Tiwari said.
All India Power Engineers’ Federation chairman Shailendra Dubey said OPS has the provision for commutation of 40 per cent of the pension amount soon after retirement and full pension to employees is restored after 15 years. He said the pension amount, under the OPS, is increased by 20 per cent when the pensioner attains the age of 80 years, 30 per cent at 85 years, 50 per cent at 90 years and 100 per cent at 95 years.
“Besides this, the OPS comes for revision with the implementation of the pay commission reports. The UPS is nowhere an alternative to the OPS,” said Dubey, adding, all employees of the power sector should also be covered under the OPS.
MAJOR CONCERNS
-UPS, like NPS, needs contributions from employees. This is not the case with OPS.
-UPS appears to lack provision for revision in the pension amount (increase) like provisions in OPS.
-There is confusion about migration from NPS to UPS or who will benefit from UPS. Those representing the employees are still in favour of OPS.