The Maharashtra government has made the revised National Pension System (NPS) optional for existing NPS employees. Under this scheme, employees who have completed 20 years of service ...read more

New Delhi: The Maharashtra government has made the revised NPS optional for employees covered under the existing National Pension System (NPS), according to a circular issued by the state's finance department on Wednesday. The circular outlines the detailed process for implementing the revised National Pension System (NPS) for government employees who opt for it.

It clarified that the scheme will apply only to those who exercise the option within the stipulated timeframe. The government had previously allowed eligible and willing employees to opt into the revised scheme until December 31, 2026.

The Maharashtra Cabinet had approved the implementation of the revised NPS for state government employees a few years ago in line with the Centre's Unified Pension Scheme .

50% of the last salary will be given as pension

According to a new circular posted on the government's website, employees who retire at the prescribed age, have completed 20 years or more of service, and who opt for the revised scheme, will receive a pension of 50 percent of their last salary (50% Pension under NPS). They will also receive a dearness allowance. For employees with 10 to 20 years of service, the pension will be determined based on their last salary and proportionate to their length of service.

Under the revised scheme, the government has fixed the minimum pension at Rs 7,500 per month for employees retiring after at least 10 years of service, while employees with less than 10 years of service will not be eligible for pension benefits.

According to the circular, 60 percent of the approved pension will be paid as family pension, along with dearness allowance. It also mandated that employees opting for the revised scheme must deposit 60 percent of the total accumulated amount received from the Pension Fund Regulatory and Development Authority (PFRDA) with the government at the time of retirement through the Drawing and Disbursing Officer (DDO).

40% will go towards annuity

The remaining 40 per cent of the accumulated fund will be used to purchase annuity (an insurance scheme providing regular pension) and the annuity amount will be adjusted against the pension payable by the State Government.

The circular stated that any withdrawals made earlier from the NPS corpus will have to be refunded along with 10 percent interest by employees opting for the revised scheme, failing which their pension entitlement will be reduced proportionately. Employees resigning from service will not be eligible for pension under the revised scheme and will only receive benefits under the existing NPS.

The rules will also apply to these employees

The government also clarified that those opting for the revised scheme will be eligible for retirement gratuity as per the earlier orders issued in March 2023.

The provisions outlined in the circular will also apply, with necessary modifications, to employees of aided educational institutions, agricultural universities, and affiliated non-government colleges, as well as to employees of district councils and panchayat committees. The Finance Department stated that a separate detailed procedure for disbursing pensions under the revised scheme will be issued.

PC:Jagran