The Maharashtra government has announced the adoption of a revised National Pension Scheme (NPS) that enhances retirement payouts for state employees who joined service from November 2005 onward.
Chief Minister Eknath Shinde stated in the Legislature on Friday that under the new pension system, employees can elect to receive 50% of their final salary as pension upon retirement.
60% Payout as Family Pension After Death
Both the pension amount and family pension will also include dearness allowance adjustments for inflation.
In the event of death of a retiree, their family would receive 60% of the employee’s pension as family pension, again accounting for dearness allowance.
So a retiree receiving ₹30,000 monthly in pension would enable their family to obtain ₹18,000 per month subsequently.
Applicable to 8 Lakh State Government Employees
The upgraded pension scheme will apply to over 8 lakh of Maharashtra’s 13.45 lakh government employees who joined service from November 1, 2005 onwards.
The National Pension Scheme (NPS) has been in effect in the state since April 2015. But the revised parameters aim to provide enhanced financial security for pensioners.
A government committee was established in March 2023 to evaluate improving the existing NPS in comparison to the older pension system.
50% Payout Alleviates Retirement Concerns
The committee put forward the recommendation of 50% last salary pension to alleviate government staffers’ apprehensions about retirement finances under the NPS.
Employees will now voluntarily be able to choose coverage under the new progressive pension system.
The move comes after intense pressure from government employee unions over retirement benefits and long-term financial security.
