Mumbai: In a swift move following the Union government's recent announcement, the Maharashtra Cabinet decided on August 25 to implement the Unified Pension Scheme (UPS) for state government employees. This decision comes just a day after the Prime Minister Narendra Modi-led Union government introduced the scheme. Maharashtra is the first state to adopt the UPS, which will be effective from March this year, providing benefits to all state government employees, especially in the poll-bound state.
Read about cabinet decision on Unified Pension Scheme (UPS)
The decision was taken in response to demands from employee unions across the state, who urged state governments to implement the newly approved scheme by the central government. The UPS will officially take effect from April 1, 2025, as per the central government’s guidelines.
The Maharashtra Cabinet's decision extends the benefits of the UPS not only to state government employees but also to those working in recognized and grant-aided educational institutions, non-agricultural universities and their affiliated aided non-government colleges, agricultural universities, as well as zilla parishad employees.
This move is expected to significantly impact the pension landscape in Maharashtra, which has a large number of state government employees. With the implementation of the UPS, the state government aims to provide a more secure and beneficial pension system for its employees, aligning with the central government’s vision.
The UPS was developed following extensive negotiations with staff organizations and was led by T V Somanathan, the cabinet secretary-designate, who headed the panel to review the National Pension System (NPS). Somanathan emphasized that over 99% of employees currently covered under the NPS would find it advantageous to switch to the UPS. He also noted that the central government’s UPS template is designed to be easily replicated by state governments, making it a viable option for widespread adoption.
If all state governments choose to adopt the UPS, the number of beneficiaries is expected to rise to 9 million, further expanding the reach and impact of this new pension scheme. /BI/
