Overview
- The state finance department issued a circular making the revised pension option available only to employees who formally choose it by December 31, 2026.
- Workers who retire with at least 20 years of service get a pension equal to 50% of their last salary plus dearness allowance, while those with 10 to 20 years get a proportionate amount.
- The plan sets a minimum pension of Rs 7,500 a month for employees with at least 10 years of service, and it bars pension benefits for those with less than 10 years.
- Employees who opt in must deposit 60% of their NPS corpus with the government at retirement, buy an annuity with the remaining 40%, and refund any prior NPS withdrawals with 10% interest or face a reduced pension.
- Resignees are not eligible under the revised plan, the rules extend with modifications to staff of aided and local bodies, and a separate procedure will detail how pensions will be paid.