The Government of Andhra Pradesh published an Ordinance, the Andhra Pradesh Guaranteed Pension System Act, 2023, on October 20.
It’s aimed at ensuring financial security to and welfare of the government employees who had subscribed to the National Pension System (NPS) by implementing a Guaranteed Pension System (GPS), while also ensuring fiscal sustainability and inter-generational equity, and for matters connected with that.
The Act was applicable to the employees who had been recruited on or after September 1, 2004, and whose pay and allowances were drawn from the Consolidated Fund of the State, including all the Tiers of all Rural and Urban Local Bodies and Universities, and opted to subscribe to the GPS.
The APGPS subscriber would be guaranteed certain benefits under the Act, subject to the provisions of sub-section (4) of Section 6 of the Act, and they included:
- Top-up amount to ensure a monthly guaranteed pension at the rate of 50% of the last drawn basic pay, in case of a shortfall in the annuity received by the retired APGPS subscriber.
- Top-up amount to ensure a monthly spouse pension at the rate of 60% of the guaranteed pension, in case of a shortfall in the annuity received by the spouse of the deceased APGPS subscriber.
- Cost of Living Adjustment on the last drawn basic pay as per inflation adjusted Dearness Relief, as per the rules notified under the Act.
- Top-up amount to ensure a monthly minimum guaranteed pension of ₹10,000 in case of shortfall in the annuity received by the APGPS subscriber.
- Providing a healthcare scheme for retired APGPS subscribers.
The existing NPS subscribers should exercise the option to subscribe to APGPS within the period as prescribed in the Act.