UPS vs NPS vs OPS: After Congress' "U-Turn" Jibe, BJP Hits Back With Questions On Old Pension Scheme

The Congress's excitement over the Unified Pension Scheme, which they have a rollback of the BJP-led government, has sparked a new criticism from the BJP. Senior BJP leader Ravi Shankar Prasad questioned when Congress would fulfil its election promises, especially regarding pensions.

"I want to ask Rahul Gandhi -- has his government implemented the Old Pension Scheme as promised in Himachal Pradesh?" said Mr Prasad, a former Union minister who handled the law portfolio. He added that the Congress party is wary of its false assurances about pensions and didn't include it in their Lok Sabha election manifesto.

Unified Pension Scheme Details

The Unified Pension Scheme retains most features of the pre-2004 Old Pension Scheme. It assures government employees 50 per cent of their last drawn basic pay as a lifelong monthly benefit. Under the New Pension Scheme introduced by Atal Bihari Vajpayee's government in 2004, pension payouts were linked to contributions made by both the government and employees.

Most Opposition states at that time opposed it, and five states chose to retain the Old Pension Scheme. Employees did not contribute to the Old Pension Scheme, a point still supported by various employee organisations.

Congress's Criticism

Congress chief Mallikarjun Kharge mocked the BJP, stating that "U" in UPS stands for "U-turn," reflecting what he sees as a pattern in the third term of the BJP-led government. "The 'U' in UPS stands for Modi Govt's U turns! Post June 4, the power of the people has prevailed over the arrogance of power of the Prime Minister," read Mr Kharge's post on X, formerly Twitter.

He listed several rollbacks by the BJP: "Rollback in the budget regarding Long Term Capital Gain / Indexation; Sending Waqf Bill to JPC; Rollback of Broadcast Bill; Rollback of Lateral Entry." He vowed to ensure accountability and protect 140 crore Indians from what he called a despotic government.

BJP's Response

Ravi Shankar Prasad criticised Congress for making announcements just to garner votes. "Governing India is a serious business... The Congress party just makes announcements to garner votes and now the public has lost trust in its decisions," he said.

The United Pension Scheme will be contributory from April 2025. Employees are expected to pay 10 per cent while the government will contribute 18.5 per cent, with a possibility of an increase.

This ongoing debate highlights deep political divides over pension reforms and governance approaches between India's major political parties.