Maharashtra Govt Clears Revised Pension Scheme: Assured 50% Pension for State Employees

In a major relief for lakhs of government employees, the Government of Maharashtra has approved a revised pension framework under the National Pension System (NPS), guaranteeing up to 50% of the last drawn salary as pension after retirement.

The Finance Department has issued detailed guidelines for implementation of the scheme, which is modeled on the Central Government’s Unified Pension Scheme (UPS). The move is aimed at strengthening post-retirement social security for state employees.

Key Features of the Revised Pension Scheme

Optional Scheme for Employees

The revised pension system will remain optional. Eligible employees can either continue with the existing NPS or shift to the new assured pension structure.

Guaranteed 50% Pension

Employees completing 20 years or more of qualifying service will receive a pension equal to 50% of their last drawn basic salary. In addition, Dearness Allowance (DA) benefits will also be applicable on the pension amount.

Pension Based on Length of Service

The pension structure has been divided into categories based on years of service:

• Employees with over 20 years of service will receive full assured pension benefits.
• Those completing between 10 and 20 years of service will receive proportionate pension benefits.
• A minimum monthly pension of ₹7,500 has been fixed for employees with at least 10 years of service.
• Employees with less than 10 years of service will not be eligible for assured pension benefits under this scheme.

Family Pension Benefits Included

The revised framework also provides financial protection to families of employees. In case of the pensioner’s death, family members will receive 60% of the approved pension amount along with applicable Dearness Relief.

Deadline to Opt for the Scheme

The Maharashtra government has fixed December 31, 2026, as the final date for eligible employees to choose whether they want to join the revised pension scheme.

Conditions Related to NPS Corpus

Under the new arrangement:

• Around 40% of the accumulated NPS corpus will be used to purchase annuity plans.
• Pension received through annuity will be adjusted against the assured pension payable by the state government.
• Employees who previously withdrew money from their NPS accounts must redeposit the amount along with 10% interest to receive full benefits under the revised scheme. Otherwise, pension benefits may be reduced proportionately.

Employees Covered Under the New Rules

The revised pension scheme will apply not only to regular state government employees but also to:

• Staff of aided educational institutions
• Employees of agricultural universities and affiliated colleges
• Personnel working in Zilla Parishads and Panchayat Samitis

The decision is expected to benefit a large section of Maharashtra’s public workforce by providing greater retirement security and predictable pension income.