The Eknath Shinde-led Maharashtra Cabinet on Thursday cleared a proposal that offers State government employees who joined service after November 2005 on the basis of recruiting advertisements issued before that date the option of availing the benefits of the old pension scheme (OPS).
The decision comes days after government and semi-government employees struck work, demanding the restoration of the OPS.
“It was decided in the Cabinet meeting today to give the old pension scheme option to those employees who joined government service on or after November 1, 2005 as per the advertisements before November 1, 2005,” said a statement issued by the Chief Minister’s Office after the meeting. “Such government officers and employees are being given a one-time option to implement provisions of the Maharashtra Civil Service Pension Rules, 1982, Maharashtra Civil Service Pension Rules, 1984 and General Provident Fund and Ancillary Rules on the lines of the Central Government,” it added.
OPS vs NPS
There are at least 9.5 lakh State employees who joined the service before November 2005 who already enjoy the benefits of the OPS.
Under the OPS, a government employee got a monthly pension equivalent to 50% of their last drawn salary. There was no need for any contribution by employees. The OPS was discontinued in 2005.
Under the New Pension Scheme (NPS), a State government employee contributes 10% of their basic salary plus dearness allowance, with the State making a matching contribution. The money is then invested in one of the several pension funds approved by the Pension Fund Regulatory and Development Authority (PFRDA) and the returns are market-linked.
The CMO note further said that concerned State government employees will be required to give the option to implement the OPS within a period of six months from the publication of the government decision.
