Key Points

The Cabinet, presided over by Chief Minister Nayab Singh Saini, here approved the policy for purchase of land voluntarily offered to government departments, its entities, i.e. boards and corporations and government companies for development projects.

The purpose of the policy is to ensure providing a platform to the landowners to prevent distress sale in case of dire necessity due to non-availability of suitable purchasers.

Besides, the landowners can participate in decision making of the government projects by offering their lands and getting optimum price.

In a significant decision to secure the future of its employees, the Cabinet adopted the Unified Pension Scheme (UPS) notified by the government of India under the National Pension System (NPS).

Effective from August 1, this landmark move will benefit over 2 lakh employees appointed on or after January 1, 2006.

The scheme, approved by the Cabinet, aims to give assured minimum pension and family pension to government employees.

The Unified Pension Scheme (UPS) will provide 50 per cent of the average basic pay drawn by an employee during the 12 months prior to retirement, provided the employee completes 25 years of service.

A minimum guaranteed payout of Rs 10,000 per month will be assured if the employee retires after completing 10 or more years of qualifying service.

In the event of the pensioner death, the family will receive 60 per cent of the last-drawn pension amount.

Dearness relief will be applicable on both the assured pension payout and the family pension, calculated in the same manner as the dearness allowance applicable to serving employees.

However, dearness relief will be payable only once the pension payout commences. A lump sum payment will also be allowed at the time of superannuation, amounting to 10 per cent of the monthly emoluments, basic pay plus dearness allowance, for every completed six months of qualifying service.

This lump sum will not affect the assured pension payout, an official statement said.

Under the current New Pension Scheme, employees contribute 10 per cent, while the government contributes 14 per cent.

With the implementation of UPS, the government contribution will increase to 18.5 per cent, resulting in a monthly expenditure of approximately Rs 50 crore and an annual cost of Rs 600 crore.

Existing employees of the government under the National Pension System, as well as future employees, will have the option to choose either the Unified Pension Scheme under the NPS or to continue with the existing NPS without the UPS option.

Once an employee opts for the UPS, all terms and conditions of the scheme will be deemed accepted, and this choice will be final.

- IANS