The Central government informed the Supreme Court on Wednesday that it had recently introduced the Unified Pension Scheme (UPS), which might address concerns related to the pension of judicial officers. A bench comprising Justices B R Gavai and Augustine George Masih heard the submission made by the government’s legal representatives.
Attorney General R Venkataramani and Solicitor General Tushar Mehta appeared before the court on behalf of the Centre. They explained that the newly notified Unified Pension Scheme (UPS) could potentially resolve the issues regarding the applicability of the New Pension Scheme (NPS) for district judiciary officers.
Court Decides to Wait and Observe
The Supreme Court acknowledged the government’s submission and stated that it would monitor how the Unified Pension Scheme functions before making a final decision on the matter. The court decided to postpone the case for 12 weeks to assess the scheme’s impact.
The case involves concerns over pension payments to district judiciary officers and retired high court judges. It is also part of a broader issue related to the salaries, arrears, and allowances of judicial officers at the district level.
Key Features of the Unified Pension Scheme (UPS)
The Ministry of Finance officially notified the Unified Pension Scheme on January 25. According to the notification, the scheme guarantees a 50% assured pension based on the average basic salary drawn in the last 12 months before retirement.
The UPS applies to central government employees who were previously covered under the National Pension System (NPS) and opt for the new scheme. However, the scheme does not apply to employees who resign, are removed, or are dismissed from service.
As per the government notification issued on January 24, the full assured payout of 50% will only be given to employees who have served for a minimum of 25 years. This provides an alternative to the market-linked pension system under the NPS.
The scheme offers a choice to approximately 23 lakh government employees, allowing them to switch from the NPS to the UPS. The NPS has been in effect since January 1, 2004.
With the Supreme Court now waiting to observe how the new pension system functions, the case is scheduled to be heard again after 12 weeks.
