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Success for State Employees' Long-Pending Demand: 50% Pension Plus Dearness Allowance Under Revised NPS
Mumbai: The operational framework for the revised pension scheme for state government employees has finally been clarified. This scheme, which had been stalled since March 2024, has now been implemented; employees who have completed 20 years or more of service will be entitled to a pension equivalent to 50 percent of their last-drawn salary, along with the benefit of Dearness Allowance.
The state government had previously discontinued the Old Pension Scheme for employees who joined the service after 2005. Following protests by employees against this decision, the then Chief Minister Eknath Shinde had pledged to implement a Revised National Pension System (NPS). Although the scheme commenced on March 1, 2024, the disbursement of pensions for many employees remained stalled due to the lack of a defined operational procedure. Following repeated protests by the employees, the government has now issued a Government Resolution clarifying the operational guidelines.
Key Features:
50% Pension: Employees will receive a pension amount equivalent to 50 percent of their last-drawn basic salary at the time of retirement.
Minimum Pension: ?7,500.
Service Tenure: No pension is granted for service periods of less than 10 years. For service periods between 10 and 20 years, a proportionate pension will be granted.
Family Pension: 60 percent of the primary pension amount.
Opting for the Scheme: To opt for this revised scheme, employees must submit a written intimation to their respective Department Heads by December 31.
Important Conditions:
Employees opting for the Revised NPS are required to deposit 60 percent of their accumulated funds held in the PFDA (Pension Fund Regulatory and Development Authority) account with the government. The pension amount will be determined based on the remaining 40 percent of the funds, after deducting the cost of the annuity. If any funds have already been withdrawn prior to this, they must be repaid to the government along with 10 percent interest. This scheme shall not be applicable to employees who have resigned from service.
This scheme shall also be applicable to employees of Zilla Parishads (District Councils), aided educational institutions, universities, and other related entities. Employee unions have welcomed this decision, while noting that greater clarity is expected regarding certain conditions. This decision is being hailed as the culmination of a long-fought struggle by over 1.7 million government employees.
Mumbai: The operational framework for the revised pension scheme for state government employees has finally been clarified. This scheme, which had been stalled since March 2024, has now been implemented; employees who have completed 20 years or more of service will be entitled to a pension equivalent to 50 percent of their last-drawn salary, along with the benefit of Dearness Allowance.
The state government had previously discontinued the Old Pension Scheme for employees who joined the service after 2005. Following protests by employees against this decision, the then Chief Minister Eknath Shinde had pledged to implement a Revised National Pension System (NPS). Although the scheme commenced on March 1, 2024, the disbursement of pensions for many employees remained stalled due to the lack of a defined operational procedure. Following repeated protests by the employees, the government has now issued a Government Resolution clarifying the operational guidelines.
Key Features:
50% Pension: Employees will receive a pension amount equivalent to 50 percent of their last-drawn basic salary at the time of retirement.
Minimum Pension: ?7,500.
Service Tenure: No pension is granted for service periods of less than 10 years. For service periods between 10 and 20 years, a proportionate pension will be granted.
Family Pension: 60 percent of the primary pension amount.
Opting for the Scheme: To opt for this revised scheme, employees must submit a written intimation to their respective Department Heads by December 31.
Important Conditions:
Employees opting for the Revised NPS are required to deposit 60 percent of their accumulated funds held in the PFDA (Pension Fund Regulatory and Development Authority) account with the government. The pension amount will be determined based on the remaining 40 percent of the funds, after deducting the cost of the annuity. If any funds have already been withdrawn prior to this, they must be repaid to the government along with 10 percent interest. This scheme shall not be applicable to employees who have resigned from service.
This scheme shall also be applicable to employees of Zilla Parishads (District Councils), aided educational institutions, universities, and other related entities. Employee unions have welcomed this decision, while noting that greater clarity is expected regarding certain conditions. This decision is being hailed as the culmination of a long-fought struggle by over 1.7 million government employees.
The state government had previously discontinued the Old Pension Scheme for employees who joined the service after 2005. Following protests by employees against this decision, the then Chief Minister Eknath Shinde had pledged to implement a Revised National Pension System (NPS). Although the scheme commenced on March 1, 2024, the disbursement of pensions for many employees remained stalled due to the lack of a defined operational procedure. Following repeated protests by the employees, the government has now issued a Government Resolution clarifying the operational guidelines.
Key Features:
50% Pension: Employees will receive a pension amount equivalent to 50 percent of their last-drawn basic salary at the time of retirement.
Minimum Pension: ?7,500.
Service Tenure: No pension is granted for service periods of less than 10 years. For service periods between 10 and 20 years, a proportionate pension will be granted.
Family Pension: 60 percent of the primary pension amount.
Opting for the Scheme: To opt for this revised scheme, employees must submit a written intimation to their respective Department Heads by December 31.
Important Conditions:
Employees opting for the Revised NPS are required to deposit 60 percent of their accumulated funds held in the PFDA (Pension Fund Regulatory and Development Authority) account with the government. The pension amount will be determined based on the remaining 40 percent of the funds, after deducting the cost of the annuity. If any funds have already been withdrawn prior to this, they must be repaid to the government along with 10 percent interest. This scheme shall not be applicable to employees who have resigned from service.
This scheme shall also be applicable to employees of Zilla Parishads (District Councils), aided educational institutions, universities, and other related entities. Employee unions have welcomed this decision, while noting that greater clarity is expected regarding certain conditions. This decision is being hailed as the culmination of a long-fought struggle by over 1.7 million government employees.
