Central and state governments operate various pension schemes to ensure the financial security of government employees after retirement. The Revised National Retirement Scheme for government employees in Maharashtra is currently a topic of discussion. This scheme establishes certain important rules to ensure employees receive the financial protection they deserve after retirement.

Revised National Retirement Pension Scheme

Under this scheme, individuals who have completed 20 years or more of eligible service are entitled to a pension of up to 50% of their salary upon retirement. However, the pension amount is determined based on eligible service, last salary, and other scheme rules.

To whom is pension given?

Employees receive a pension proportionate to their 10 to 20 years of service. For example, if an employee has 15 years of service and a retirement salary of ₹1 lakh, they can receive a pension based on eligibility criteria.

How much pension is given?

This scheme also has a minimum pension provision. It states that employees with 10 years or more of eligible service will receive a minimum pension of ₹7,500 per month. However, relevant government regulations will apply for eligibility and actual benefits.

Additionally, there is a provision for a family pension to be provided to the employee's family after their death. According to information received, the family can receive up to 60% of the employee's approved pension as a family pension.

At the time of retirement, 60% of the funds accumulated in the NPS are deposited with the state government, and the remaining amount can be used to purchase an annuity. This attempts to provide a regular source of income after retirement.

PC: Upstox