The UPS pension is inflation-indexed to which index?

Explanation

The Unified Pension Scheme links inflation protection to Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). PIB's Cabinet approval note lists inflation indexation for three UPS components: assured pension, assured family pension and assured minimum pension. The PIB note specifies that Dearness Relief will be based on AICPI-IW, as in the case of service employees. That is why the relevant index is not a general consumer-price measure, a wholesale-price measure or an output-price deflator. AICPI-IW is the official index named for Dearness Relief under UPS.

Why the other options are wrong

• (A) Consumer Price Index (Urban) is a general consumer-price option, but the PIB note names AICPI-IW for UPS Dearness Relief.
• (B) Wholesale Price Index tracks wholesale prices, while the UPS inflation adjustment is tied in the PIB note to AICPI-IW.
• (D) GDP Deflator is not used for UPS pension indexation; PIB specifies AICPI-IW-based Dearness Relief.

Concept

Government pension-scheme design often turns on how inflation indexation is operationalised through a named index. RAS governance coverage often turns on the exact official feature, not just the scheme's broad purpose.

Source

• Press Information Bureau

Related questions

• A bill to amend the Constitution can be introduced:
• A bill under Article 3 for the formation of a new State requires:
• A CAG audit of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) revealed that what percentage of beneficiaries had blank, zero, Null or N/A bank-account details?
• A Financial Emergency under Article 360 must be approved by Parliament within:
• A joint sitting of both Houses of Parliament can be summoned under which Article?
• A joint sitting of both Houses of Parliament under Article 108 can be called to resolve a deadlock on: