Mumbai, Aug 28 (IANS): Days after the Maharashtra Cabinet approved the revised National Pension Scheme (NPS), the state government on Wednesday said it would implement the Centre’s Unified Pension Scheme (UPS) in the state.

“The Finance Department is being authorised to implement the UPS in Maharashtra as cleared by the Centre for its employees,” the state Finance Department said.

However, there was no mention of whether the state government will withdraw the Cabinet’s decision taken on Sunday on the implementation of the revised National Pension Scheme.

The Cabinet had given its consent based on the report submitted by a high-level committee headed by retired IAS officer Suresh Kumar which had recommended that the state government should bear the risk of investment in the NPS.

As per the revised pension scheme, the employees will get a pension equal to 50 per cent of their last salary plus dearness allowance and 60 per cent of the family pension.

As per the Cabinet decision circulated by the Chief Minister’s Office on Sunday, the revised National Pension Scheme will be implemented from March 1, 2024, onwards to the employees who are covered by the National Pension System.

There are 13.45 lakh state government employees and also from local self-government. Of the 13.45 lakh employees, 8.27 lakh employees are presently covered under the National Pension Scheme.

Maharashtra government’s outgo towards salary on its employees was estimated at Rs 1,59,071 crore against Rs 1,42,718 crore in 2023-24. The government has estimated its expenses on pension at Rs 59,817 crore against Rs 45,908 crore in the same period. This is expected to increase further with the state government’s decision to implement the UPS.

A senior minister said that the difference between the UPS and the state government’s revised NPS is that under the UPS the employees will get an average of the last 12 months’ salary and in the revised NPS they will get a pension equal to 50 per cent of their last salary.

“In the revised national pension scheme, there was no mention of whether the full pension will be given in 25 or 30 years and whether a minimum pension will also be given for 10 years of service,” the minister said.

He added that under UPS, the government’s contribution will rise to 18.5 per cent of the employee’s basic salary and Dearness Allowance (DA), up from the current 14 per cent under NPS.

“The state Finance Department will prepare and submit a detailed proposal for the Cabinet’s approval,” the minister said.

Meanwhile, Chief Minister Eknath Shinde - who is unwell - is expected to soon hold talks with various government employee unions to take their views on the implementation of UPS in the state.