Assured pension scheme effective in Kerala from April 1, govt staff to get 50% of last basic pay at retirement
The Assured Pension Scheme was first announced by Finance Minister K N Balagopal in the Budget 2026 speech as a replacement for the contributory pension system.
The Assured Pension Scheme was first announced by Finance Minister K N Balagopal in the Budget 2026 speech as a replacement for the contributory pension system.
The Assured Pension Scheme was first announced by Finance Minister K N Balagopal in the Budget 2026 speech as a replacement for the contributory pension system.
Thiruvananthapuram: The state government has granted in-principle sanction to implement the Assured Pension Scheme (APS) for its employees, replacing the National Pension System (NPS). The scheme will be implemented with effect from April 1, 2026.
As per the order, employees appointed on or after April 1, 2026, can opt either for the NPS or the Assured Pension Scheme. Existing state government employees currently covered under the NPS will also be allowed to switch to the new scheme.
Under the Assured Pension Scheme, the maximum assured pension will be 50 per cent of the last drawn basic pay at the time of retirement, subject to 50 per cent of the maximum of the highest scale of pay under the state government. Employees must complete 30 years of qualifying service to be eligible for the full pension. Dearness Relief (DR) will also be allowed on the assured pension.
The order said detailed guidelines for implementing various aspects of the scheme will be issued separately.
The Assured Pension Scheme was first announced by Finance Minister K N Balagopal in the Budget 2026 speech as a replacement for the contributory pension system. The Budget document had stated that the scheme would ensure up to 50 per cent of the last basic pay as pension and allow DR, with an option for employees to shift from the NPS.