Maharashtra Govt Gives Employees Option to Choose Old Pension Scheme

The Maharashtra government has issued a GR allowing its employees who joined service after November 1, 2005, to opt for the Old Pension Scheme instead of the National Pension Scheme. Those who do not submit requests within six months will continue under NPS.

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In a significant move, the Maharashtra government has issued a Government Resolution (GR) inviting its employees who joined service after November 1, 2005, to submit requests within six months to avail the benefits of the Old Pension Scheme (OPS).

Eligibility Criteria

The GR clarifies that this opportunity is applicable to employees whose advertisements for their respective posts were issued before November 1, 2005, but they joined the service after that date.

Cabinet Approval

The state cabinet had previously approved a proposal to provide such employees with the option of choosing the OPS instead of the National Pension Scheme (NPS).

Deadline for Submission

The GR emphasizes that employees who fail to submit their requests within six months from the date of issuance of the GR will continue to receive benefits under the NPS.

Process after Request Approval

If an employee's request for OPS is approved, the authorities concerned must issue necessary orders within two months of such clearance. Subsequently, the employee's NPS account will be closed, and a General Provident Fund (GPF) account will be opened.

Transfer of Funds

The amount accumulated in the employee's NPS account, including interest, will be transferred to the GPF account. Additionally, the state government's share in the NPS account will be transferred to the state fund.

Benefits of OPS

Under the OPS, a government employee is entitled to a monthly pension equivalent to 50% of their last drawn salary. Notably, there was no requirement for employee contributions under the OPS.

Discontinuation of OPS

It is important to note that the OPS was discontinued in the state of Maharashtra in 2005.

New Pension Scheme (NPS)

Under the NPS, a state government employee contributes 10% of their basic salary plus dearness allowance, with the state making a matching contribution. The funds are then invested in approved pension funds regulated by the Pension Fund Regulatory and Development Authority (PFRDA), and the returns are linked to market performance.

The Maharashtra government's decision to allow employees to opt for the OPS provides a choice for those who prefer the guaranteed pension benefits of the old scheme. This move demonstrates the government's commitment to addressing the concerns of its employees and ensuring their financial well-being during retirement.