Mumbai: In a decision that will benefit 26,000 state government employees, the Maharashtra government on Thursday cleared a proposal that offers an option of availing the Old Pension Scheme (OPS) to the state government employees who joined the service after November 2005.
The decision comes days after the government as well as semi-government employees and officials went on a strike to press for their demand of restoring the OPS.
The decision will benefit 26,000 state government employees, who were recruited as per the employment notices issued before November 1, 2005, but joined the services after that date.
There are nearly 9.5 lakh state employees who joined the service before November 2005 and they already enjoy the benefits of the OPS.
Under the OPS, a government employee gets a monthly pension equivalent to 50% his/her last drawn salary. There was no need for contribution by employees. The OPS was discontinued in the state in 2005.
Under the New Pension Scheme (NPS), a state government employee contributes 10% of his/her 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.
