Mumbai: In a significant move aimed at providing relief to state government employees, Chief Minister Eknath Shinde announced the implementation of a revised 'Pension Scheme' during the Legislative Assembly session on Friday. The scheme ensures that retired employees receive 50 percent of their basic salary as pension, benefitting approximately eight and a half lakh officers and employees appointed on or after November 1, 2005.
The decision comes after prolonged protests by employee unions advocating for the restoration of the old pension scheme. Promising action during the budget session, the government fulfilled its commitment by announcing the revised pension scheme for employees who entered government service after November 1, 2005.
Under the revised scheme, state government employees will now receive pensions similar to those in Andhra Pradesh, entailing 50% of their final basic pay plus dearness allowance upon retirement. Additionally, families of retired employees will receive 60% of the pension and dearness allowance.
For employees enrolled in the National Pension System (NPS) and retiring at a fixed age, the option to switch to the Revised National Pension Scheme will be available. This alternative guarantees a pension equivalent to 50 percent of their last pay, adjusted for inflation, along with family pension set at 60 percent of the pension, also adjusted for inflation. Employees must opt for this revised plan within six months, with those retiring in December 2024 having a one-month window to make their decision.
Explaining the differences between the old, new, and revised pension schemes, it was highlighted that while the old scheme provided a fixed 50 percent of basic pay as pension without any contribution from employees, the new scheme required a 10 percent contribution from employees and a 14 percent share from the government, with pension amounts subject to market fluctuations. However, the revised pension scheme maintains the 10 percent employee contribution and 14 percent government contribution, guaranteeing a fixed 50 percent of the last basic salary as pension post-retirement.
Chief Minister Eknath Shinde expressed satisfaction with the decision, noting that it honors the government's commitment to employee unions. The decision was made after careful consideration of the committee's report tasked with revising the National Pension Scheme, with Shinde affirming its benefits for lakhs of employees, officers, and their families.
The implementation of the revised pension scheme marks a significant step towards ensuring the welfare and security of Maharashtra's government employees in their post-retirement years.