06 May,2026 04:15 PM IST | Mumbai | mid-day online correspondent
The revised model aligns broadly with the Centre’s Unified Pension Scheme (UPS). Representational Pic/File
The Maharashtra government has announced that its revised version of the National Pension Scheme (NPS) will now be optional for employees already covered under the existing framework, reported the PTI.
The decision was detailed in a circular issued by the state finance department.
Under the new rules, eligible government employees can choose to opt for the revised scheme within the stipulated deadline of December 31, 2026, officials said.
The revised model aligns broadly with the Centre's Unified Pension Scheme (UPS), which had earlier guided the state's policy direction.
Only those employees who formally exercise this option within the deadline will be covered under the revised provisions.
The circular outlines clear pension benefits:
- According to the PTI, the employees retiring after 20 years or more of service will receive a pension equal to 50 per cent of their last drawn salary, along with dearness allowance.
- Those with 10 to 20 years of service will receive a proportionate pension based on their tenure.
- A minimum pension of Rs 7,500 per month has been fixed for employees completing at least 10 years of service.
- Employees with less than 10 years of service will not be eligible for pension benefits under this scheme.
The revised framework also includes:
- A family pension set at 60 per cent of the admissible pension, along with dearness relief.
- Eligibility for retirement gratuity, as per earlier government orders issued in March 2023.
Conditions on pension corpus
- Employees opting for the revised scheme must comply with specific financial conditions:
- 60 per cent of the accumulated corpus from the Pension Fund Regulatory and Development Authority (PFRDA) must be deposited with the government at retirement.
- The remaining 40 per cent will be used to purchase an annuity, which will be adjusted against the pension payable, as per the PTI.
Additionally, any earlier withdrawals from the NPS corpus must be refunded with 10 per cent interest, failing which pension benefits may be reduced.
Employees who resign from service will not be eligible for pension under the revised scheme and will continue under the existing NPS framework, the news agency reported.
The provisions will also extend, with suitable modifications, to staff of aided institutions, agricultural universities, non-government colleges, zilla parishads, and panchayat samitis.
The finance department has stated that a separate, detailed procedure for pension disbursement under the revised scheme will be released soon, the news agency reported.
(with PTI inputs)
