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Pension Reforms

Why did the Centre alter its pension plan?

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Unified Pension Scheme;

Mains level: Reason behind the need for a Unified Pension Scheme;

Why in the News?

The Union Cabinet approved a new Unified Pension Scheme for Central government employees, set to launch on April 1, 2025, benefiting 23 lakh employees.

What are the main features of the Unified Pension Scheme? 

  • Assured Pension: Employees will receive half of their average basic pay from the last 12 months of service as a monthly pension, provided they have served at least 25 years. A minimum pension of ₹10,000 is guaranteed for those with at least 10 years of service.
  • Family Pension: Dependents will receive 60% of the government worker’s pension upon their demise (death of a person).
  • Inflation Adjustment: Pension incomes will be adjusted for inflation, similar to the dearness relief provided to current employees.
  • Lump Sum Superannuation Payout: A lump sum equivalent to 1/10th of an employee’s salary and dearness allowance for every six months of service, in addition to gratuity benefits.
  • Contributory Mechanism: Employees will contribute 10% of their salary to the pension pool, while the government will contribute 18.5%.

How is it different from the current pension system?  

  1. Old Pension Scheme (OPS): Provided an assured pension at 50% of the last drawn salary with no contributions required from employees.
    1. It also offered an additional pension for pensioners above 80 years and adjustments based on Pay Commission recommendations.
  2. National Pension System (NPS): Introduced in 2004, it was a defined contribution scheme with 10% contributions from both employees and the government, but without guaranteed pension amounts.
  3. Unified Pension Scheme (UPS): Combines the assured pension model of OPS with the contributory mechanism of NPS, but with a higher government contribution (18.5%) and a guarantee of certain pension benefits.

Why did the government feel the need to bring about this change? 

  1. Employee Dissatisfaction with NPS: Government employees, especially those who joined post-2004 under the NPS, were dissatisfied with the uncertainty in pension incomes compared to their predecessors under the OPS.
  2. Political and Electoral Considerations: The issue became politically sensitive, with opposition parties promising to revert to OPS in some states, prompting the central government to address these concerns.
  3. Balancing Aspirations with Fiscal Prudence: The government aimed to find a middle ground that would satisfy employees while maintaining fiscal discipline.

How have government employees responded?  

  • Positive Reception: Government employees have largely welcomed the UPS as it addresses concerns with the NPS by reintroducing assured pension benefits and increasing the government’s contribution, offering greater financial security in retirement.
  • Reservations: Despite the positive aspects, there are concerns about the continued contributory nature of the scheme and the absence of a commutation option, with employees seeking more clarity on these issues.

What will be the cost to the exchequer?

  1. Immediate Costs: The UPS is expected to cost an additional ₹7,050 crore this year due to the higher government contribution and arrears for some employees.
  2. Future Financial Impact: While the initial impact will be the additional 4.5% contribution from the government, the assured pensions will increase future government liabilities. However, economists believe this can be managed through higher revenue growth and can be compared to the impact of Pay Commission revisions.

Way forward: 

  • Ensure Clear Communication and Transparency: The government should provide detailed guidelines and clarify any remaining ambiguities about the Unified Pension Scheme (UPS).
  • Plan for Long-Term Fiscal Sustainability: To manage the increased financial burden from the UPS, the government should incorporate these commitments into its fiscal planning, potentially exploring new revenue sources to maintain fiscal prudence while ensuring the long-term sustainability of the pension scheme.

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Foreign Policy Watch: India-Africa

A crisis in WANA that no one talks about 

Note4Students

From UPSC perspective, the following things are important :

Prelims level: West Asia and North Africa (WANA)

Mains level: Conflict in Africa;

Why in the News?

The fight between the Sudan Armed Forces (SAF), led by General Abdel Fattah al-Burhan, and the Rapid Support Forces (RSF), led by General Mohamed Hamdan Dagalo, also known as Hemayti (“My Protector”), has caused severe destruction in Sudan.

Historical Background of Sudan

  • Civil Strife and Governance: Sudan has a history of civil strife, marked by 15 military coups and two civil wars since its independence in 1956, resulting in 1.5 million deaths and the secession of South Sudan in 2011. The conflict in Darfur has been particularly notable, involving the Janjaweed militia and leading to over 200,000 deaths and millions displaced.
  • Current Crisis Genesis: The ongoing conflict is rooted in the 30 years of autocratic rule by Omar Hassan al-Bashir, who was overthrown in 2019. The subsequent attempts to establish a civilian government failed, culminating in a military coup in October 2021, which led to the current armed conflict between the Sudan Armed Forces (SAF) and the Rapid Support Forces (RSF) starting on April 15, 2023.

Global Power Competition and Regional Powers Influence

  • Foreign Involvement: Sudan’s conflict has drawn significant foreign interest due to its strategic location and natural resources. Egypt supports the SAF, while Iran backs the SAF despite its rivalry with Egypt. The UAE has emerged as the primary supporter of the RSF, providing weapons and resources. Russia’s Wagner Group has also supported the RSF, while the Kremlin seeks a naval base in Port Sudan.
  • Geopolitical Dynamics: The conflict has created complex alliances, with countries like Chad and Libya also involved. Mercenaries from various regions, including South Sudan and Ukraine, have joined the fray, complicating the conflict further.

Sudan and Syria Issue:

  • Humanitarian Crisis: Sudan’s crisis is particularly acute due to its strategic location and resource wealth, leading to a massive displacement crisis, with over 10 million people displaced since April 2023
  • Parallel Conflicts: Both Sudan and Syria have experienced severe internal conflicts driven by authoritarian regimes, regional power plays, and foreign interventions, leading to widespread human suffering and instability.

India’s Strategic Considerations:

  • Economic Interests: India’s trade with Sudan reached $2,034 million in 2022-23, with a significant trade surplus. India has also invested heavily in Sudan’s oil sector, with cumulative investments worth $2.3 billion.
  • Historical Ties: India has maintained strong people-to-people ties with Sudan, including educational exchanges and medical tourism. President A.P.J. Abdul Kalam’s visit in 2003 reinforced these relations.
  • Humanitarian and Diplomatic Engagement: India evacuated its nationals early in the conflict, but the ongoing crisis may require continued diplomatic and humanitarian engagement to protect its broader interests in the region.

Way forward: 

  • Strengthen Multilateral Diplomacy: India should collaborate with international bodies like the UN and the African Union to promote peace initiatives in Sudan, leveraging its neutral position to mediate and support conflict resolution efforts that safeguard regional stability and its strategic interests.
  • Expand Humanitarian and Development Aid: India can bolster its humanitarian assistance, focusing on essential services like healthcare and education, while also exploring opportunities for post-conflict reconstruction projects, ensuring long-term economic engagement and goodwill in Sudan.

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What is the Munich Agreement and the role it played in starting World War II?   

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Munich Agreement

Why in the News?

On September 1, 1939, German troops invaded Poland, sparking World War II. Britain and France declared war on Germany two days later, on September 3.

The Sudeten crisis 

  • Background: The Sudeten crisis emerged from Hitler’s demand that the German-majority regions of Czechoslovakia, known as Sudetenland, be ceded to Germany. These regions, with a population of over three million German-speaking people, were part of Czechoslovakia after the dissolution of the Austro-Hungarian Empire post-World War I. Hitler aimed to incorporate Sudetenland into his vision of a “Greater Germany.”
  • German Occupation: Following the Munich Agreement, German troops occupied Sudetenland from October 1 to October 10, 1938. This occupation was part of Hitler’s broader plan for territorial expansion.

About the Munich Agreement and changes after that 

  • Signatories: The Munich Agreement was signed on September 29-30, 1938, by Germany, France, Italy, and Great Britain. Czechoslovakia was not a party to the agreement but was pressured into accepting it by the signing powers.
  • Terms: The agreement allowed Germany to annex Sudetenland in exchange for a promise of peace. Great Britain’s Prime Minister Neville Chamberlain, who supported the agreement, famously declared it as “peace with honour” after returning from Munich.
  • Terms and Implementation:
    • Plebiscite: Some regions within Sudetenland were subject to a plebiscite for determining their fate.
    • Military Withdrawal: The Czechoslovak government was required to withdraw its military and police forces from Sudetenland and release Sudeten German prisoners within four weeks of the agreement.
  • Aftermath: Despite the Munich Agreement, Hitler violated the terms within six months by invading the rest of Czechoslovakia.
    • The Munich Agreement, intended to appease Hitler and maintain peace, ultimately failed and was seen as a significant misjudgment of dealing with expansionist totalitarian regimes.

Conclusion: The Munich Agreement, meant to appease Hitler by ceding Sudetenland to Germany, failed disastrously. Within six months, Hitler violated the agreement by invading the rest of Czechoslovakia, highlighting the dangers of appeasing expansionist totalitarian regimes.

Mains PYQ: 

Q There arose a serious challenge to the Democratic State System between the two World Wars.” Evaluate the statement. (2021)

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Methane’s Contribution in Climate Change

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Methane emission

Why in the News?

The European Union introduced a new regulation in May 2024 requiring fossil fuel companies to routinely measure, report, and reduce methane emissions.

About Methane Emissions:

Details
Nature Colorless, Odourless.

Considered a short-lived climate pollutant due to its shorter atmospheric lifetime compared to CO2.

Global Warming Potential (GWP) 80 times more potent than carbon dioxide over a short term.
GWP100: 28 (over 100 years)Accounts for approximately 30% of global warming.
Atmospheric Lifetime Breaks down in about 12 years; shorter-lived compared to CO2.
Major Sources Cattle farming: 32% of human-caused methane emissions (includes manure and enteric fermentation)
Landfills: Approximately 20%
Wastewater treatment: Around 8%
Rice cultivation: About 10%
Industrial processes: Varied but significant
Natural Non-Human Sources Includes wetlands and permafrost, which release methane through natural processes.
Impact Compared to CO2 Traps 84 times as much heat as CO2 over a 20-year period.
CO2 has a longer-term warming effect but is less potent.
Key Initiatives Global Methane Pledge: Launched at UN COP26, signed by over 90 countries, led by the US and EU.

India did not sign.

 

PYQ:

[2019] Consider the following:

  1. Carbon monoxide
  2. Methane
  3. Ozone
  4. Sulphur dioxide

Which of the above are released into atmosphere due to the burning of crop/biomass residue?

(a) 1 and 2 only

(b) 2, 3 and 4 only

(c) 1 and 4 only

(d) 1, 2, 3 and 4

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Innovations in Biotechnology and Medical Sciences

Gut molecule in C. Elegans Worms slows fat burning

Note4Students

From UPSC perspective, the following things are important :

Prelims level: C. Elegans Worm

Why in the News?

Researchers have discovered a mechanism in Caenorhabditis elegans (C. elegans) worms that explains why fat loss slows down during fasting.

Fasting and Fat Metabolism

  • The brain is known to regulate fat production and breakdown in humans, other mammals, and model organisms like C. elegans.
  • In 2017, researchers identified FLP-7 hormone in the brain that triggers fat burning in the gut of C. elegans.
  • However, it was unclear how the gut communicates back to the brain, as C. elegans lacks sensory nerves in their intestines.
  • The study reveals that during fasting, the gut produces a form of insulin called INS-7, which signals the brain to halt fat burning.
  • Unlike traditional insulin, which activates insulin receptors, INS-7 blocks these receptors, leading to a cascade of events that stop the production of the fat-burning hormone FLP-7.

About Caenorhabditis elegans (C. elegans):

Details
Overview A small, free-living nematode (roundworm) used as a model organism in biological research.
Size Approximately 1 millimeter in length.
Habitat Found in soil environments worldwide.
Reproduction Primarily self-fertilizing hermaphrodites; males make up a small percentage and can mate with hermaphrodites.
Genome First multicellular organism to have its genome fully sequenced; about 20,000 genes.
Chromosomes Six chromosomes (five autosomes, one sex chromosome).
Body Plan Approximately 1,000 cells in an adult hermaphrodite; transparent body allows for easy microscopic observation.
Lifespan Around 2 to 3 weeks under laboratory conditions.
Research Contributions Instrumental in discoveries related to apoptosis, RNA interference, gene regulation, and human diseases.

 

PYQ:

[2013] Improper handling and storage of cereal grains and oilseeds result in the production of toxins known as aflatoxins which are not generally destroyed by normal cooking process. Aflatoxins are produced by:

(a) Bacteria

(b) Protozoa

(c) Moulds

(d) Viruses

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Festivals, Dances, Theatre, Literature, Art in News

In news: Thanjavur Veena

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Thanjavur Veena

Why in the News?

Thanjavur, Tamil Nadu, is renowned for making the Veena, the first musical instrument in India to receive a Geographical Indication (GI) tag.

About Thanjavur Veena:

Details
Type Saraswati Veena (a classical stringed musical instrument)
GI Tag Received in 2012.
Crafting Materials Jackfruit wood, known for its resonance and tonal quality.
Production Process – Wood is cut, carved, shaped, and assembled.
– Takes 15-20 days to complete.
– Involves three parts: resonator (kudam), neck (dandi), and tuning box.
Other Types of Veena – Saraswati Veena (used in Carnatic classical music)
– Rudra Veena and Vichitra Veena (used in Hindustani classical music)
– Chitra Veena (used in Carnatic classical music)

 

PYQ:

[2021] With reference to India, the terms ‘Halbi, Ho and Kui’ pertain to​:

(a) Dance forms of Northwest India​

(b) Musical instruments​

(c) Pre-historic cave paintings​

(d) Tribal languages​

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LGBT Rights – Transgender Bill, Sec. 377, etc.

[pib] Measures taken by Govt. for LGBTQI+ Community

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Various schemes mentioned

Why in the News?

The Department of Social Justice and Empowerment has invited inputs to ensure that policies and initiatives regarding the LGBTQI+ community are inclusive and effective.

Who are the LGBTQ+?

  • It is an umbrella term used to refer to lesbian, gay, bisexual, transgender, queer and intersex.
  • LGBTQI+ people represent a subset of individuals among the broader category of sexual and gender diverse individuals.
  • Sexual orientation, gender identity and expression (SOGIE) is diverse and spans cultures across the world.

Various policy initiatives for LGBTQI+ Community:

Policy/Scheme Details
Supreme Court Judgment on Section 377 (2018) Decriminalized consensual same-sex relations by ruling that Section 377 of the Indian Penal Code, which criminalized such acts, was unconstitutional.
• Affirmed the right to privacy and equality, marking a historic victory for LGBTQI+ rights in India.
Transgender Persons (Protection of Rights) Act (2019) • Grants legal recognition to transgender individuals, prohibits discrimination in education, employment, and healthcare, and mandates the establishment of a national and state-level transgender welfare board.
• Ensures protection of transgender rights, and access to welfare benefits, and facilitates legal recognition and equality.
National Portal for Transgender Persons (2020) • An online platform launched by the Ministry of Social Justice and Empowerment for applying for a transgender certificate and identity card.
• Streamlines the legal recognition process, enabling transgender individuals to obtain official documentation more easily.
SMILE Scheme (2021) • “Support for Marginalized Individuals for Livelihood and Enterprises” Central Sector scheme.
• Provides financial assistance and support for the livelihood and enterprise development of marginalized individuals and beggars, including members of the LGBTQI+ community. 

 

PYQ:

[2023] Explain the constitutional perspectives of Gender Justice with the help of relevant Constitutional Provisions and case laws.

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