Summary of this article
50 per cent assured pension introduced
DA and family pension benefits included
Employees can opt in till December 2026
The Maharashtra government has rolled out a pension reform that affects the state government employees covered under the National Pension System (NPS). Under the revised framework, the eligible employees who opt for the new scheme will get an assured pension which is equal to 50 per cent of their last drawn salary. This is also paired with dearness allowance (DA), bringing relief to lakhs of government workers who seek greater post-retirement security.
The revised National Pension Scheme (RNPS) has been made optional for employees currently under the NPS structure. As per PTI, the Maharashtra government has released a circular mentioning that employees can choose to shift to the new revised pension framework until December 31, 2026. The move is viewed as the state’s attempt to balance out the financially burdensome Old Pension Scheme (OPS) with the New NPS model.
As per the new rules, employees who are retiring after completing 20 years or more in service are eligible to a pension amounting to 50 per cent of their final salary, which also includes the DA benefits. Employees who have completed between 10 and 20 years in service are eligible to receive a proportionate pension based on their tenure. However, the employees with less than 10 years in service do not qualify for these reforms for pension benefits.
The state government has also introduced a minimum pension of Rs 7,500 per month for employees who are retiring after at least 10 years in service. Additionally, the scheme is expected to provide family pension benefits as well, where dependents will receive 60 per cent of the pension along with dearness relief in case of the pensioner’s death.
This revision is not without clauses; the revised scheme relates to the pension corpus accumulated under NPS. Employees who are opting for the RNPS will have to deposit 60 per cent of their accumulated pension corpus from the Pension Fund Regulatory and Development Authority (PFRDA) with the government at the time of retirement. The remaining 40 per cent will be used to purchase an annuity, and the annuity amount will be adjusted against the pension payable.
The circular further states that employees who have withdrawn money from the NPS corpus must repay the withdrawn amount with 10 per cent interest. If one fails to do so, it can lead to a reduction in pension entitlement. Employees who resign before reaching the age of retirement will continue under the existing NPS structure and won’t be eligible for the revised NPS system.
FAQs
Q: What is NPS Swastha?
NPS Swasthya Pension Scheme is an initiative to combine healthcare coverage and old-age financial security in a single product. The aim is to provide a comprehensive solution; however, who is it suitable for.
Q: Is there a medical allowance in NPS?
Eligible NPS pensioners will get the fixed medical allowance directly in their bank account without having the need to submit the bills. The CPAO has issued a notification clarifying the process for direct credit of FMA to the beneficiaries’ accounts.
Q: What is NPS Sanchay?
The pension regulator, PFRDA, rolls out ‘NPS Sanchay’, a simplified version of the National Pension System (NPS), specifically for the informal sector workers who constitute 90 per cent of the total workforce. The idea is to bring them under the pension security umbrella
