The Maharashtra cabinet on decided to retrospectively adopt the Centre’s revised Unified Pension Scheme (UPS) from March 1, 2024 onwards.
Those covered under the National Pension Scheme (NPS) who opt for the revised scheme will receive a guaranteed pension equal to 50% of their last salary plus inflationary increase. On death of the employee, 60% of the employee’s pension will be paid to the next of kin (family pension).
The state has over 13.5 lakh employees. The decision will also be applicable to employees of recognised and grant-aided educational institutions, non-agricultural universities and their affiliated aided non-government colleges and agricultural universities. It will also be applicable to zilla parishad employees.
Last year, state employees had gone on strike, demanding a return to the OPS. The NPS had been introduced in the state in 2005, in view of the financial burden of pensions. The main concern of employee unions was that since the NPS is linked to the market, their pension fund carries the risk of speculation. Also, it was not linked to a base salary.