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Critical Topics and Their Significance for the UPSC CSE Examination on September 02, 2024
Daily Insights and Initiatives for UPSC Exam Notes: Comprehensive explanations and high-quality material provided regularly for students
Why did the Centre alter its pension plan?
For Prelims Examination: Current events of national and international importance
For Mains Examination: GS II - Governance on Pension Scheme
Context:
Union Cabinet signed off on a major shift in the approach to provide old age income security to Central government employees, with a new Unified Pension Scheme (UPS) to be launched on April 1, 2025. About 23 lakh Central government employees are expected to benefit from the scheme, while employees who are part of an ongoing pension scheme called the National Pension System will have the option to switch to the UPS. States can also bring their employees under the UPS but will need to work out funding from their own resources
Read about:
What is the Unified Pension System (UPS)?
What are the main features of the Unified Pension Scheme?
Key takeaways:
The Unified Pension Scheme (UPS) refers to a pension initiative proposed to streamline and unify various pension systems in India, aiming to provide a more consistent and efficient framework for pension benefits across different sectors. It is a part of broader reforms aimed at improving the sustainability and accessibility of pension systems for both government employees and individuals in the private sector.
Here are some key aspects of the Unified Pension Scheme:
- The goal is to integrate various existing pension schemes under one umbrella to ensure uniformity. This may include merging the Employees' Provident Fund (EPF), National Pension System (NPS), and other pension plans
- The scheme aims to allow portability of pension accounts, meaning individuals can carry their pension benefits even if they change jobs across different sectors or move from the private to the public sector, and vice versa
- The Unified Pension Scheme is designed to be more inclusive, extending pension benefits to unorganized sector workers and those who are currently outside any formal pension schemes
- A unified regulatory framework would be established to ensure proper management and oversight of the pension funds, enhancing transparency and security for the contributors
- By unifying various schemes, the administration costs can be reduced, and the efficiency of managing pension funds can be improved, ultimately benefiting the contributors.
More Information
- Government employees who joined service before January 1, 2004, were covered by the Old Pension Scheme (OPS). However, this scheme was replaced by the National Pension System (NPS) for employees who started working on or after that date.
- The OPS provided employees with a guaranteed pension of 50% of their last drawn salary, along with increases for dearness allowance. It also included a family pension amounting to 60% of the last drawn pension and a minimum pension of ₹9,000 plus dearness allowance.
- Upon retirement, employees could opt to receive 40% of their pension as a lump sum. Additionally, pensioners or family pensioners who reached 80 years of age received a 20% increase in their monthly payouts, with further increases every five years.
- Pensions were adjusted in line with salary revisions recommended by the Pay Commission, with the last such revision occurring in 2016.
- A key distinction between the OPS and both the NPS and the Unified Pension Scheme (UPS) is that OPS payments came directly from the government's funds each month, meaning these liabilities were "unfunded."
- Unlike private sector employees whose retirement savings are managed by the Employees’ Provident Fund Organisation, neither employees nor employers made contributions under the OPS.
- The NPS, introduced by the Atal Bihari Vajpayee government following discussions on the unsustainable costs of civil servants’ pensions, moved away from the OPS's 'defined benefits' model to a 'defined contribution' system.
- Under the NPS, 10% of employees' salaries, matched by the employer’s contribution (whether by the Central or State government), were invested in market-linked securities, including equities, managed by professional fund managers.
- At retirement, employees were required to use 40% of their accumulated NPS funds to purchase an annuity that provides a monthly income. Although the government increased its contribution to the NPS to 14% in 2019, the NPS did not guarantee pension amounts, unlike the OPS.
- The Unified Pension Scheme (UPS) seeks to merge the defined benefits of the OPS with the defined contributions approach of the NPS. Employees will contribute 10% of their salary, while the government will contribute a higher rate of 18.5%, with the possibility of adjusting this rate over time.
- The government will cover any shortfall between the returns generated by these contributions and its pension commitments. It is unclear if the UPS will incorporate future Pay Commission recommendations or provide higher pensions for those over 80 years of age, as was the case under the OPS
Follow Up Question
1.Which of the following statements about the Unified Pension Scheme (UPS) is/are correct?
- The Unified Pension Scheme combines elements of both the Old Pension Scheme (OPS) and the National Pension System (NPS).
- Under the Unified Pension Scheme, both employees and employers contribute equally at a rate of 10% of the employee’s salary.
- The government guarantees to cover any shortfall between the returns on contributions and the pension commitments under the Unified Pension Scheme.
Select the correct answer using the code given below:
A) 1 only
B) 1 and 2 only
C) 1 and 3 only
D) 2 and 3 only
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Answer (C)
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For Preliminary Examination: Current events of national and international importance
The Central Consumer Protection Authority (CCPA) has taken action against Shankar IAS Academy for issuing misleading advertisements related to the UPSC Civil Service Exam 2022. The CCPA, led by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, imposed a penalty of ₹5 lakh on the academy for these deceptive advertisements.
This decision aims to protect and promote consumer rights, ensuring that no false or misleading advertisements are made about goods or services, as per the Consumer Protection Act, 2019. Under Section 18 of this Act, the CCPA is empowered to prevent misleading advertisements that violate the Act's provisions.
Shankar IAS Academy made several claims in its advertisements for the UPSC Civil Service exam 2022, including:
- “336 selections out of 933 at All India Level”
- “40 candidates in Top 100”
- “42 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”
- “Best IAS Academy in India”
The CCPA found that the academy did not disclose crucial information about the courses taken by these successful candidates, leading consumers to believe that all successful candidates had enrolled in the paid courses advertised by the academy. This practice misled consumers into purchasing these paid courses.
In its response, Shankar IAS Academy provided details for only 333 successful candidates, despite claiming 336 selections in UPSC CSE 2022. Of these claimed students, 221 participated in a Free Interview Guidance Programme, 71 took the Mains Test Series, 35 opted for the Prelims Test Series, 12 were enrolled in the General Studies Prelims cum Mains, and 4 took the Prelims Test Series along with another Mains course. This information was not disclosed in their advertisement, thereby misleading consumers, especially UPSC aspirants, about the academy's role in these candidates' success.
Additionally, the CCPA discovered that in 18 instances, candidates purchased Preliminary courses from Shankar IAS Academy with a receipt date of October 9, 2022, while the UPSC CSE 2022 Preliminary exam was already conducted on June 5, 2022, with results declared on June 22, 2022. This indicated that these candidates bought the course for the next UPSC CSE Preliminary exam in 2023. Despite this, Shankar IAS Academy included these candidates in their total selections for UPSC CSE 2022, further misleading consumers
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Answer (D)
The Consumer Protection Act, 2019, actually includes provisions for mediation as an alternate dispute resolution mechanism. The Act provides for the establishment of a Central Consumer Protection Authority (CCPA), expands the definition of a consumer, and allows for e-filing of complaints. Mediation is recognized as a method to resolve disputes under this Act
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Chhatrapati Shivaji Maharaj (1630-1680) established an independent Maratha kingdom from various Deccan states in the 17th century. He was the son of a general who had served different Deccan Sultans throughout his life.
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Shivaji aimed to transform his father's domain around modern-day Pune into a separate Maratha state. During this period, several Sultanates, such as Bijapur, Golkonda, and Ahmadnagar, as well as the Mughals, were vying for control of the Deccan region.
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As Mughal power increased, these Sultanates became tributaries to the Mughal Empire, with their rulers and clans receiving positions within the Mughal court. Despite this, they continued to be embroiled in internal conflicts.
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Shivaji's struggle against the Adil Shahi Sultanate of Bijapur began when he was just 16 years old. He dedicated the rest of his life to battling various opponents, ultimately laying the foundation for the Maratha Empire, which extended across much of the Indian subcontinent and continued into the 19th century.
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Shivaji's first direct confrontation with the Mughals occurred during Aurangzeb’s Deccan campaigns of the 1650s. As Aurangzeb moved north to pursue the Mughal throne, Shivaji was able to expand his territory further.
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In 1664, Shivaji attacked the port of Surat (now in Gujarat), plundering one of the wealthiest and busiest commercial centers of Mughal India while the local governor sought refuge in a nearby fort.
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Aurangzeb, observing Shivaji’s growing influence and legendary status, dispatched a 100,000-strong, well-equipped army under Raja Jai Singh I in 1665 to subdue him. Despite a fierce resistance, Shivaji was eventually besieged in the Purandar hill fort.
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In 1666, Shivaji was taken to Aurangzeb’s court in Agra. Although he presented gifts to Aurangzeb, he was displeased with his treatment and expressed his dissatisfaction publicly.
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Aurangzeb placed Shivaji under house arrest in Agra. Realizing the need to escape to protect himself and his territories, Shivaji began devising a plan to return home and continue his struggle against the Mughals.
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Shivaji’s escape became the stuff of legend. According to popular accounts, he orchestrated an elaborate plan by distributing alms to Brahmins in large, covered baskets from his residence in Agra.
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Over time, the Mughal guards grew lax about inspecting the contents of these baskets. Shivaji concealed himself in one basket and his young son, Sambhaji, in another. In this manner, Shivaji and his son managed to leave Agra undetected by the Mughal authorities.
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Aurangzeb chose not to engage in immediate conflict with Shivaji again. Instead, he offered Shivaji the title of Raja, acknowledging his authority over the Maratha lands, provided Shivaji recognized Mughal supremacy and maintained a truce.
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By 1669, Shivaji had reorganized and built an effective army. Employing his traditional guerrilla tactics, he made rapid strikes against static Mughal and Bijapuri strongholds, causing significant disruptions.
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During this period, Aurangzeb was preoccupied with Pathan revolts in the north-western part of his empire. Shivaji skillfully regained his lost positions along the Konkan coast and, in 1674, crowned himself Chhatrapati, formally establishing an independent Maratha kingdom.
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At the time of his death, Shivaji controlled around 300 forts across an area extending from Surat to near Goa along the Konkan coast, strategically protected by the Western Ghats
B) Torna Fort
C) Shivneri Fort
D) Pratapgad Fort
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Answer (B)
Chhatrapati Shivaji Maharaj captured Torna Fort in 1646 at the age of 16. This marked the beginning of the expansion of his kingdom, which laid the foundation for the establishment of the Maratha Empire. Torna Fort is also known as Prachandgad, and its capture was a significant event in Shivaji's early military career. Raigad Fort later became his capital, and Shivneri Fort was his birthplace, while Pratapgad Fort is famous for the Battle of Pratapgad against Afzal Khan
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Copyright is a form of intellectual property law that grants the creator of original works exclusive rights to its use and distribution, usually for a limited time. This legal concept applies to a wide range of creative, intellectual, or artistic forms, such as:
- Literary works (books, poems, articles)
- Musical compositions (songs, lyrics)
- Visual art (paintings, drawings, photographs)
- Films and videos
- Software programs
- Dramatic works (plays, screenplays)
- Architectural designs
Exclusive Rights: Copyright holders have several exclusive rights, including the right to:
- Reproduce the work
- Distribute copies of the work
- Perform or display the work publicly
- Create derivative works based on the original (e.g., adaptations, sequels)
- License the work to others
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Answer (C)
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- As production units in Bangladesh resume operations, with workers working extra hours to clear backlogged orders, Western garment and footwear companies have temporarily stopped placing new orders in the violence-stricken neighboring country
- The reduction in orders from Bangladesh has impacted the Indian textile industry, which provides raw materials and other inputs to Bangladesh. While there are new inquiries for garments from India, the export of Indian cotton to Bangladesh has started to decrease, industry officials noted.
- “Western companies are not placing new orders. The workers and the management know that production is critical, so they are working overtime to meet existing orders. Some items are being sourced from India to complete these orders, and even more technicians are coming from India,”
- Ahmed mentioned that much of the production is happening in Dhaka and Chittagong, areas less affected by the protests. While there were disruptions earlier in August, normalcy is returning, and Ahmed believes Western orders will eventually resume due to the favorable duty conditions that Bangladesh enjoys as a least developed country (LDC).
- “Western companies are considering India as an alternative, but a lot depends on the ability to meet demand, as there are both qualitative and quantitative gaps between what India and Bangladesh offer,” noted Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry (CITI).
- Chatterjee stated that while there are inquiries for garments, the immediate impact on the Indian textile industry has been negative because our exports of input materials to Bangladesh have slowed. However, initiatives like the PLI scheme and PM Mitra scheme are positive steps towards meeting domestic demand, she added.
- An executive from the garment sector, who chose to remain anonymous, said that Western companies were already considering India as an option even before the current crisis in Bangladesh. The European market is increasingly concerned about human rights issues in Bangladesh and is, therefore, looking more towards India.
- “Bangladesh's saturation began a while ago, but the orders did not shift to India. Most are moving to Cambodia, Vietnam, and Indonesia. India has potential, but our product range is not evolving, and we are not reaping the benefits,”
- The Bangladeshi textile and garment industry, which accounts for over 80% of the country’s total export earnings and contributes about 11% to its GDP, employs over four million workers and generates around $45 billion.
- This industry was already facing challenges due to weakened electricity infrastructure, increased input costs following the onset of the Russia-Ukraine war, and adverse weather events, according to S&P Global
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Answer (C)
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| Subject | Topic | Description |
| History | Modern Indian History | National Movements between 1919 to 1939 |
| History | Modern Indian History | Governor generals of India |
| History | Modern Indian History | Doctrine of Lapse |
| History | Modern Indian History | Religious reform Movements |
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