Maharashtra Becomes First State To Implement Unified Pension Scheme

Mumbai: The Maharashtra government led by Chief Minister Eknath Shinde becomes the first state to implement the Unified Pension Scheme (UPS) for the state employees a day after the Union Cabinet chaired by Prime Minister Narendra Modi launched the pension scheme across the nation. The decision came up after a meeting of the Maharashtra Cabinet chaired by Eknath Shinde held on Sunday. The state Cabinet gave a green signal to the UPS, which will be implemented for government employees in Maharashtra from March 2024.

With the latest decision of the Maharashtra government, lakhs of state government employees will be benefitted. The central government on Saturday announced the Unified Pension Scheme for all government employees across the nation, which ensures an assured pension. 

State Employees Benefits

While implementing the scheme, the central government on Saturday said that around 23 lakh central government employees will get benefits under the Unified Pension Scheme. It is being said that the same benefits will be availed by the state government employees after the pension scheme is implemented in Maharashtra.

The government further stated that the Unified Pension Scheme or UPS is designed to offer better financial security to government employees by guaranteeing fixed pensions and family pensions. Apart from this, with an increase in inflation, there is also a provision for an increase in pension under the newly implemented pension scheme.

What is Unified Pension Scheme or UPS?

The Narendra Modi government on Saturday announced a new Unified Pension Scheme (UPS), which will be effective from April 1, 2025. Announcing the big decision, Union Minister Ashwini Vaishnaw said the new scheme for government employees will assure them pensions. “Government employees have demanded some changes in the New Pension Schemes. For this, PM Modi constituted a committee under the chairmanship of Cabinet Secretary TV Somanathan. This committee held more than 100 meetings with different organisations and nearly all the states.”

Under the UPS, government employees will receive 50 per cent of their salary as a pension, based on the average basic pay drawn over the last 12 months prior to retirement, provided they have a minimum qualifying service of 25 years. The scheme also includes an assured family pension, where 60 percent of the employee’s pension can be immediately drawn by their family upon their demise. Additionally, a minimum pension of Rs 10,000 per month is assured for employees who retire after at least 10 years of service.

Salient Features of Unified Pension Scheme:

• Assured pension: 50% of the average basic pay drawn over the last 12 months before superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for a lesser service period up to a minimum of 10 years of service.
• Assured family pension: @60% of pension of the employee immediately before her/his demise.
• Assured minimum pension: @10,000 per month on superannuation after a minimum of 10 years of service.
• Inflation indexation: on assured pension, on assured family pension and assured minimum pension
• Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) as in the case of service employees' lump sum payment at superannuation in addition to gratuity
• 1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service this payment will not reduce the quantum of assured pension.