Maharashtra to soon implement UPS for benefits of its employees
Maharashtra to soon implement UPS for benefits of its employees
As per the Maharashtra cabinet’s decision, UPS will be effective from March this year and will benefit all state government employees.
The Maharashtra government on Sunday, August 25, announced that it will implement a revised National Pension Scheme (NPS) for state government employees, in line with the Union government’s Unified Pension Scheme (UPS).
With this, Maharashtra became the first state to offer a switch to its employees amid expectation that others, especially those governed by NDA, will follow suit.
The decision comes a day after the Union Cabinet on Saturday, August 24, approved the UPS for central government employees, which guarantees 50 per cent of the average salary drawn over the last 12 months of service as pension.
As per the Maharashtra cabinet’s decision, UPS will be effective from March this year and will benefit all state government employees, including Zilla Parishad, an official said.
However, employees who retire before this date and have already purchased annuities under the NPS will continue to receive the benefits of their annuity until February 29, 2024.
This revised NPS will cover employees who joined after November 1, 2005.
The state government also accepted the recommendation that it should bear the risk of market-linked investments under the National Pension System (NPS).
Employees retiring under the revised scheme will receive a pension equal to 50 per cent of their last drawn salary and dearness allowance (DA). Additionally, family pensions will be set at 60 per cent of the pension and DA.
It is pertinent to note that the tenure of the Maharashtra assembly ends in November this year, and polls are likely to be held in October-November.
The cabinet also approved a plan to lease Maharashtra Housing and Area Development Authority (MHADA) land in Sion to the Mumbai District Central Cooperative Bank for 30 years, for the construction of Sahakar Bhawan (Cooperative Building).
Additionally, the cabinet cleared the proposal to expand the uninterrupted power supply scheme to more farmers in the state. They would get supplies during the day. It cleared the Rs 7,000 crore Nar-Par-Girana river linking scheme that would primarily benefit north Maharashtra districts like Nashik and Jalgaon.The state government would raise Rs 5000 crore under Mahatma Phule Renewable Energy and Infrastructure Technology Ltd for an ambitious project in Thane district.
