Agra Railway employees have been protesting for several years regarding the Old Pension Scheme. They have repeatedly warned the central government about the possibility of railway strikes. Last Friday, the central government made a significant announcement not only for railway employees but for all central government employees regarding the long-pending pension scheme. Divisional Railway Manager Tej Pratap Agarwal informed the media that the Indian government has announced the implementation of a Unified Pension Scheme for railway employees and all central employees. This new pension scheme will come into effect from April 1, 2025.
Pension Details: Tej Pratap Agarwal explained that the scheme's special feature is that under the Unified Pension Scheme (UPS), employees will receive a guaranteed pension, unlike the New Pension Scheme (NPS) where pension was based on market investments. In this scheme, if a retired employee passes away, their dependents will receive 60% of the pension as a family pension. The scheme also includes a provision for a minimum pension after 10 years of service, amounting to at least ₹10,000, which with inflation adjustments will result in a minimum of ₹15,000 for those retiring today.
Benefits: According to Tej Pratap Agarwal, for every 6 months of service, employees will receive 10% of their basic salary as a bonus, in addition to gratuity. Additionally, employees with 30 years of service will receive an extra 6 months of salary. For those with at least 25 years of service, the guaranteed pension will be 50% of the average basic salary received in the last 12 months before retirement. The scheme also allows for pension adjustments based on the inflation index.
Special Features: The Divisional Railway Manager highlighted that under the Unified Pension Scheme, employees will have the option to choose between the New Pension Scheme (NPS) and the Unified Pension Scheme (UPS). The scheme will continue with a 10% contribution, but the government will also make a lump-sum payment based on a fixed formula. The government has increased its contribution for the guaranteed pension from 14% to 18.5%.
Celebrations: Tej Pratap Agarwal mentioned that the Unified Pension Scheme will benefit not only railway employees but also 2.3 million central employees. In the Agra Railway Division, 8,640 employees will benefit from this scheme. The scheme is applicable to those who joined central government service after 2004. Following the announcement, there is great excitement among railway employees, and celebrations with drums and music have been held at the DRM office to mark the scheme's implementation, coinciding with Janmashtami.