Over 136,000 WR and CR employees to benefit from new pension scheme
28 Aug 2024
2 Min Read
CW Team
More than 136,000 employees of Central Railway (CR) and Western Railway (WR) are expected to benefit from the newly announced Unified Pension Scheme (UPS) by the Union Government, officials confirmed on Monday. The Narendra Modi-led government approved the UPS on Saturday for central government employees who joined service after January 1, 2004.
Under the new scheme, employees currently enrolled in the National Pension Scheme (NPS) can opt for UPS, which offers an assured pension amounting to 50% of the average basic pay drawn over the last 12 months before retirement. The minimum qualifying service for this benefit has been set at 25 years.
Central Railway, with 96,039 employees, has 70,778 NPS subscribers鈥攁bout 73.69% of its workforce鈥攚ho stand to gain from the new scheme, according to CR General Manager Ram Karan Yadav.
Western Railway General Manager Ashok Kumar Mishra also highlighted that of WR's 96,000 employees, around 66,000, or 70%, are NPS subscribers who will benefit from UPS. He made these comments during a media interaction at Churchgate.
Officials noted that the UPS, unlike NPS, is not market-linked, which eliminates the uncertainty regarding the pension amount鈥攁n issue that has been a primary concern for employees. The government or employer contribution under UPS has been increased to 18.5%, up from the current 14% under NPS, potentially leading to a financial burden on the zonal railways.
Currently, Central Railway contributes Rs 455 million per month for all NPS-covered employees, while WR contributes Rs 420 million. Employees will have the option to choose between NPS and UPS once detailed guidelines are issued by the railway board. The UPS is scheduled for implementation from April 1, 2025, and is expected to benefit 230,000 central government employees.
(ET)
More than 136,000 employees of Central Railway (CR) and Western Railway (WR) are expected to benefit from the newly announced Unified Pension Scheme (UPS) by the Union Government, officials confirmed on Monday. The Narendra Modi-led government approved the UPS on Saturday for central government employees who joined service after January 1, 2004.Under the new scheme, employees currently enrolled in the National Pension Scheme (NPS) can opt for UPS, which offers an assured pension amounting to 50% of the average basic pay drawn over the last 12 months before retirement. The minimum qualifying service for this benefit has been set at 25 years. Central Railway, with 96,039 employees, has 70,778 NPS subscribers鈥攁bout 73.69% of its workforce鈥攚ho stand to gain from the new scheme, according to CR General Manager Ram Karan Yadav.Western Railway General Manager Ashok Kumar Mishra also highlighted that of WR's 96,000 employees, around 66,000, or 70%, are NPS subscribers who will benefit from UPS. He made these comments during a media interaction at Churchgate.Officials noted that the UPS, unlike NPS, is not market-linked, which eliminates the uncertainty regarding the pension amount鈥攁n issue that has been a primary concern for employees. The government or employer contribution under UPS has been increased to 18.5%, up from the current 14% under NPS, potentially leading to a financial burden on the zonal railways.Currently, Central Railway contributes Rs 455 million per month for all NPS-covered employees, while WR contributes Rs 420 million. Employees will have the option to choose between NPS and UPS once detailed guidelines are issued by the railway board. The UPS is scheduled for implementation from April 1, 2025, and is expected to benefit 230,000 central government employees.(ET)
Next Story
MoHUA Plans New Role for Smart City SPVs
In a significant policy move, the Ministry of Housing and Urban Affairs (MoHUA) has issued an advisory encouraging the continued use and repurposing of Special Purpose Vehicles (SPVs) formed under the Smart Cities Mission (SCM). This marks a step toward sustaining urban transformation by leveraging institutional capabilities and infrastructure developed over the past decade.Initiated in 2015, the Smart Cities Mission introduced a new era of urban planning in India, with each of the 100 selected cities forming SPVs under the Companies Act, 2013. These entities, jointly owned by state government..
Next Story
ADB Approves $110 Million Loan to Boost Skills in Gujarat
The Asian Development Bank (ADB) has approved a USD 109.97 million (Rs 9.27 billion) results-based loan to support Gujarat鈥檚 efforts to become a global industrial hub by developing a future-ready, skilled workforce.The funding will back the Gujarat skills development programme, led by the Department of Labour, Skill Development and Employment in collaboration with Kaushalya: The Skill University (KSU). The initiative aims to equip the workforce with advanced, industry-aligned skills to meet rising employment demand in high-growth sectors.According to ADB, the programme seeks to strengthen in..
Next Story
SDAL Tests Rudrastra UAV and Bhargavastra Defence System
Solar Defence and Aerospace Limited (SDAL) has successfully completed a key flight test of its indigenous Hybrid VTOL UAV Rudrastra at the Pokharan Firing Range, aligning with Indian Army performance benchmarks for mission adaptability, high endurance, precision engagement, and vertical take-off and landing (VTOL) capability.The trial marks a notable achievement in India鈥檚 Aatmanirbhar Bharat initiative, underscoring advancements in home-grown military technology. The Rudrastra UAV demonstrated a mission radius exceeding 50 km with uninterrupted video relay, a total operational range of over..
