NPS Overhaul In Maharashtra: Game-Changing Scheme Announced For State Employees - Details

nps overhaul in maharashtra: game-changing scheme announced for state employees – details

The Maharashtra government has made significant revisions to the National Pension Scheme (NPS) applicable to employees who joined service from November 1, 2002. The updated NPS incorporates a crucial provision from the old pension scheme, fulfilling a longstanding demand from state government employees.

Under the revised scheme, employees will now receive 50 per cent of their last drawn salary as pension, in addition to dearness allowance. According to The Economic Times report, additionally, 60 per cent of this amount will be granted as family pension, along with dearness allowance, as announced by Chief Minister Eknath Shinde in both Houses of the Maharashtra assembly on Friday.

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This move addresses some concerns of the employees, with Shinde emphasizing its significance for the welfare of lakhs of workers and officers. To avail these benefits, employees are required to opt for the NPS.

While assuring to safeguard NPS employees from market-linked uncertainties, the state government maintains that employees must contribute 10 per cent of their salaries to the scheme. However, this contribution will be retrospective, impacting the lumpsum amount during retirement as it will be deducted from the Provident Fund along with interest.

Despite these assurances, the provision of employee contributions has deterred many from choosing the NPS, even in other sectors.

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State Gazetted Officers Federation president Vinod Desai revealed that the government has committed to creating a ‘special fund’ controlled by the treasury director. The report added that this fund will be exclusively utilised to compensate employees in case market fluctuations affect their pension. While the state has addressed financial and social security concerns under the new pension scheme, it has not reintroduced other elements of the old pension scheme.