The decision follows an announcement by Finance Minister K N Balagopal in the state Budget that an Assured Pension Scheme ensuring a minimum pension would be introduced in place of the National Pension System (NPS).
According to the minister’s office, employees entering government service from April 1, 2026, can opt for either the Assured Pension Scheme or continue under the NPS.
Existing employees currently enrolled under the NPS will also be given an option to switch to the Assured Pension Scheme, Balagopal said in a statement.
Under the scheme, the maximum pension will be 50 per cent of the basic pay drawn at the time of retirement, calculated on the basis of the pay scale sanctioned by the state government.
Dearness Relief (DR) will be admissible in addition to the pension amount.
Employees must complete 30 years of qualifying service to be eligible for the maximum pension.
Detailed guidelines for the scheme will be issued separately, the minister added.
