The Maharashtra government has made the revised National Pension System (NPS) optional for state employees covered under NPS.
The state finance department has issued a new circular explaining how the revised pension scheme will work and who can benefit from it.
The government has also clarified that only employees who choose the revised scheme within the given deadline will be eligible. Earlier, the state had allowed eligible employees to opt for this revised scheme until December 31, 2026.
How Much Pension Will Employees Get?
According to the new circular, employees who retire at the prescribed retirement age after completing at least 20 years of service will receive pension equal to 50% of their last drawn salary. They will also get dearness allowance (DA) along with the pension.
For employees who have completed between 10 and 20 years of service, the pension amount will be calculated proportionately based on their years of service and last salary.
The government has fixed the minimum pension at Rs 7,500 per month for employees retiring after completing at least 10 years of service.
However, employees with less than 10 years of service will not get pension benefits under the revised scheme.
The circular also states that family pension beneficiaries will receive 60% of the approved pension amount along with dearness relief (DR).
Important Conditions for Employees Choosing Revised NPS
The government has introduced some important conditions for employees opting for the revised pension scheme.
At the time of retirement, employees will have to deposit 60% of the total amount received from the Pension Fund Regulatory
and Development Authority (PFRDA) with the government through the Drawing and Disbursing Officer (DDO).
The remaining 40% of the amount will be used to buy an annuity plan, which provides regular pension income after retirement.
The circular also mentions that if an employee has made any previous withdrawals from the NPS fund, that amount must be returned with 10% interest. If the amount is not repaid, the employee’s pension benefits will be reduced accordingly.
Another important point is that employees who resign from service will not get pension benefits under the revised scheme. They will continue to receive benefits only under the existing NPS system.
These Employees Will Also Get Benefits
The Maharashtra government has also clarified that employees choosing the revised scheme will continue to receive retirement gratuity benefits as per earlier orders issued in March 2023.
The rules of the revised scheme will also apply, with necessary changes, to employees of aided educational institutions, agricultural universities, affiliated non-government colleges, district councils, and panchayat committees.
