Employees and members of the Telangana State Contributory Pension Scheme (CPS) Employees Union strongly opposed the Central government’s new Unified Pension Scheme (UPS). On Sunday, they gathered at Dharna Chowk to protest against the scheme, demanding the return of the Old Pension Scheme (OPS).
Why Are Employees Opposing the UPS?
The Central government has announced that the Unified Pension Scheme will be implemented from April 1, 2025. However, employees argue that this scheme will not benefit them and will instead help corporate companies.
Sthitaprajna, the State President of the Union and General Secretary of the National Movement for Old Pension Scheme, spoke at the gathering. He said:
- The UPS will channel employees’ pension funds into corporate hands.
- Around ₹10.5 lakh crore collected from government employees has already gone into corporate investments, leading to financial risks.
- Employees have been fighting for 10 years to bring back the Old Pension Scheme, which provides secure retirement benefits.
- The new scheme will leave government employees in financial distress, while benefiting private investors.
How Will the UPS Affect Employees?
If the Unified Pension Scheme is implemented, it will badly affect government employees, especially teachers.
- Teachers appointed through DSC in 2003 will get a pension of less than ₹5,000 per month after retirement.
- This small amount is not enough to support their families or live a dignified life.
CPS Contributions and Share Market Risks
The CPS employees contribute ₹450 crore every month to the share market through the NPS Trust.
- After the formation of the new Telangana government, ₹600 crore of CPS contributions from 51,000 employees were invested in the stock market.
- If the Old Pension Scheme is brought back, ₹17,000 crore collected in the past 25 years could be used for public welfare programs and old-age benefits for teachers.
Protest Plans Against the UPS
The General Secretary of the National Movement for OPS called April 1 a “Black Day” and announced a protest schedule:
- May 1: A “Chalo Delhi” protest.
- September: A mass holiday to oppose the Unified Pension Scheme.
CPS and UPS: A Way to Avoid Government Responsibility?
State General Secretary K Srikanth criticized the CPS and UPS policies. He said:
- The government is trying to avoid its responsibility of paying pensions.
- Instead, it is moving employees’ hard-earned money into pension funds, which are invested in the share market.
- The stock market is unpredictable, and employees’ retirement funds should not be at risk.
Conclusion
The Unified Pension Scheme is facing strong opposition from employees who believe it benefits corporate companies rather than securing their future. They are determined to continue protests and demand the restoration of the Old Pension Scheme for a secure retirement.
