MUMBAI: With state assembly polls looming and the threat of a strike by state employees from the 29^th, the state cabinet on Sunday decided to adopt the Centre’s revised pension scheme for state employees from March 1, 2024 onwards.
Those covered under the National Pension Scheme (NPS) who opt for revised scheme will receive a guaranteed pension equal to 50% of their last salary plus inflationary increase.On the 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 cabinet decision will also be applicable to employees of recognized and grant-aided educational institutions, non-agricultural universities and their affiliated aided non-government colleges and agricultural universities who are members of the NPS. It will also be applicable to zilla parishad employees.
Last year, state government employees had gone on strike, demanding a return to the Old Pension Scheme. 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.
The state had appointed a committee under retired IAS officer Subodh Kumar. In March 2024, after the committee submitted its report, chief minister Eknath Shinde announced a revised NPS, which fixed the pension at 50% of the employee’s last drawn basic salary plus dearness allowance for employees retiring on or before November 2005.
However, there was no subsequent movement on the issue, prompting threats of another strike. The cabinet decision came just a few days before the strike was planned.
“We will revise our decision on the strike in view of the cabinet decision. We will make an announcement tomorrow after receiving the official communication on this,” said G D Kulthe from the Maharashtra State Gazetted Employees Federation.
According to the cabinet decision, employees who have retired before 1st March, 2024 and who purchased annuity after retirement under the NPS will continue to benefit from the annuity admissible under the NPS from the date of their retirement till 29th February, 2024 and from 1st March, 2024.
The computation of service period under this scheme will be related to contribution (subscription) actually paid by the member. The period for which the member has not paid the contribution shall not be counted as a period of service for the above purpose.
The period during which the employee’s contribution has not been deducted from his salary, if the employee pays future contributions with interest, that period will be counted as period of service.
Any earlier or later withdrawals from the accumulated funds under the NPS will be required to be paid with 10% interest from the start of the revised national pension scheme.
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