In a recent meeting, Maharashtra Chief Minister Eknath Shinde addressed state government employees and union representatives to discuss pension schemes. The meeting, which took place late Wednesday night, followed the Maharashtra Cabinet’s decision to implement the Centre’s Unified Pension Scheme (UPS) for state employees. This decision had sparked concerns among employee unions, who were advocating for more options.
Options for Pension Schemes
Chief Minister Shinde clarified that employees are not required to choose the UPS exclusively. Instead, they now have three options:
- Unified Pension Scheme (UPS): Under this scheme, retirees will receive 50% of their average basic pay from the last 12 months of service, provided they have completed at least 25 years of service. For those with 10 to 25 years of service, the pension amount will be proportionate to their years of service. This scheme will be effective from April 1, 2025, and benefits will apply to retirees up to March 31, 2025, including any arrears.
- National Pension Scheme (NPS): Employees under this scheme contribute 10% of their basic salary plus Dearness Allowance (DA), with a matching contribution from the government. Since 2019, this contribution rate has increased to 14%. However, the NPS does not guarantee a fixed pension amount as it depends on the accumulated corpus and investment returns.
- Revised State Pension Scheme: This scheme offers a pension equal to 50% of the last salary plus DA and 60% of the family pension.
Employee Union Reactions
Following CM Shinde’s assurance, employee unions have decided to suspend their agitation. They had previously expressed concerns over the government’s decision to implement the UPS without providing additional options. The unions had pushed for the revised pension scheme announced by the state legislature.
Next Steps
CM Shinde also directed the administration to prepare a proposal for implementing the Old Pension Scheme for Zilla Parishad officers and employees who applied for recruitment before November 1, 2005. He instructed the relevant departments to review and address these demands accordingly.
Current Coverage
Maharashtra has approximately 13.45 lakh state government employees, including those in local self-government. Out of these, 8.27 lakh employees are currently covered under the National Pension Scheme.
The Chief Minister emphasized that the government is committed to ensuring that all employees receive fair and sustainable pension benefits. The flexibility to choose among the three options will allow employees to select the scheme that best suits their needs.
