Maharashtra NPS Revision: NPS employees in Maharashtra will now receive a guaranteed pension equivalent to 50% of their last-drawn salary. Read on for full details of this new scheme, which includes provisions for family pensions and a guaranteed minimum payout of ₹7,500.

Maharashtra NPS Revision: The Maharashtra government has taken a momentous decision regarding pensions for its employees. The State Finance Department has issued a new circular clarifying that employees covered under the National Pension System (NPS) can now avail the benefits of a ‘revised’ pension scheme. This scheme closely mirrors the Centre’s ‘Unified Pension Scheme’ (UPS), which guarantees a fixed payout rather than relying on the fluctuations of the stock market.

What is the New Formula for the 50% Pension?

The most significant feature of this scheme is that if an employee has completed 20 years or more of service, they will receive a pension amounting to a direct 50% of their last-drawn basic salary at the time of retirement. Dearness Allowance (DA) will also be added to this amount. Employees with a service tenure between 10 and 20 years will be granted a proportionate pension based on their total years of service. For those with a minimum of 10 years of service, the government has guaranteed a minimum monthly pension of ₹7,500. However, employees with less than 10 years of service will not be eligible for the benefits of this pension scheme.

What About Family Pensions and Existing Funds?

The government has also made provisions for the employees’ families. In the event of an employee’s demise, the family will receive a pension equivalent to 60% of the deceased employee’s total pension entitlement. However, there is a crucial condition attached: at the time of retirement, the employee must deposit 60% of the total corpus received from the PFRDA (Pension Fund Regulatory and Development Authority) into the government treasury. The remaining 40% of the corpus will be utilized to purchase an annuity, the proceeds of which will be adjusted by the government against the pension payout. Furthermore, if you have previously withdrawn any funds from your NPS account, you must repay the amount along with 10% interest; otherwise, the corresponding sum will be deducted from your pension entitlement.

Who is eligible for the benefits, and what is the deadline?

This scheme is open to all employees currently working in District Councils (Zila Parishads), Panchayat Samitis, aided educational institutions, and agricultural universities. Please note that participation in this scheme is not mandatory; it is an optional choice. Any employee wishing to opt for this new arrangement must submit their consent by December 31, 2026. Employees who resign from their positions will not be eligible for these benefits; they will continue to remain under the existing NPS framework.

Why is this decision significant for employees?

For quite some time, government employees have been demanding a return to the Old Pension Scheme (OPS), primarily because returns under the NPS were contingent upon market performance. With this new amendment, employees are now assured of a guaranteed, fixed income. Consequently, they will no longer need to worry about market fluctuations—whether the market rises or falls—following their retirement; instead, they will continue to receive a fixed pension amount calculated based on their last drawn salary.