Prattay Scheme being added to universal pension 

A new pension scheme titled ‘Prattay Scheme’ is being added to the Universal Pension Scheme in a bid to incorporate the staff of the self-governed, autonomous, state-owned, statutory or homogeneous organisations and their subordinate bodies.

The ministry of finance issued a press release in this regard on Wednesday.

According to the SRO No-47-Act/2024 issued on March 13, all the officers or employees in the service of all self-governed, autonomous, state-owned, statutory or homogeneous organisations and their subordinate bodies, who would join in such service on July 1 and thereafter, will be included under the Universal Pension Scheme Management Act.

Besides, on March 13 another SRO titled No-48-Act/2024 was issued which declared the outline of the Prattay Scheme applicable to the employees of the aforesaid institutions.

As a result of the introduction of the Prattay Scheme, the interest of the existing officers or employees of these institutions will not be affected and their existing pension or gratuity benefits will remain intact.

However, those who have a minimum of ten years of service remaining can participate in the Prattay Scheme if they express interest.

By participating in the Prattay Scheme, monthly pension will be available upon retirement while future financial security will be ensured for the officials and employees of these institutions who would join on July 1 and thereafter.

In the existing system, very few self-governed, autonomous, state-owned, statutory or homogeneous organisations and their subsidiary bodies have pension schemes. Most of the employees working in such organisations are covered by the welfare scheme while the CPF (Contributory Provident Fund) system is applicable for them.

In the aforesaid system, the employees are entitled to enjoy a one-time gratuity as a retirement benefit at the end of service, but they will not enjoy any monthly pension. As a result, one often faces financial uncertainty in post-retirement life.