05 Jan, 2024 09:33 AM

Maha Cabinet permits OPS option for employees hired through ads issued before Nov 2005

Maha Cabinet permits OPS option for employees hired through ads issued before Nov 2005

The Maharashtra Cabinet, led by Eknath Shinde, has approved a proposition allowing state government employees who entered service post-November 2005 based on recruitment advertisements issued before that date, the choice to opt for the benefits of the old pension scheme (OPS).

This decision follows recent strikes by government and semi-government employees urging the reinstatement of the OPS.

"In today's Cabinet meeting, it was resolved to grant the option of the old pension scheme to employees who joined government service on or after November 1, 2005, as per advertisements issued before that date," stated the Chief Minister’s Office after the meeting. "These government officials and employees will have a one-time opportunity to adopt the provisions outlined in the Maharashtra Civil Service Pension Rules of 1982, Maharashtra Civil Service Pension Rules of 1984, and General Provident Fund and Ancillary Rules, aligning with those of the Central Government," the statement added.

OPS versus NPS Approximately 9.5 lakh state employees who commenced service before November 2005 already benefit from the OPS.

Under the OPS, government employees received a monthly pension amounting to 50% of their last drawn salary without requiring any contribution from employees. The OPS was discontinued in 2005.

Contrarily, under the New Pension Scheme (NPS), a state government employee contributes 10% of their basic salary plus dearness allowance, matched by a contribution from the state. This money is then invested in pension funds approved by the Pension Fund Regulatory and Development Authority (PFRDA), with returns linked to the market.

The CMO additionally stated that concerned state government employees must decide whether to implement the OPS within six months from the government decision's publication date.

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