Mumbai: Maharashtra Cabinet Approves Option for Old Pension Scheme; Other Key Decisions Taken

Mumbai, 4th January 2024: In response to the recent strikes by government and semi-government employees advocating for the restoration of the Old Pension Scheme (OPS), the Maharashtra cabinet has approved a proposal granting the option of availing OPS to state government employees who joined service after November 2005. The Chief Minister’s Office (CMO) confirmed the cabinet’s decision, specifying that approximately 26,000 state government employees, selected before November 2005 but receiving joining letters later, will have the choice to benefit from OPS.

The Old Pension Scheme ensures a monthly pension equal to 50% of the last drawn salary without any employee contribution. This option was discontinued in the state in 2005, and replaced by the New Pension Scheme (NPS) which requires a 10% contribution from the employee’s basic salary plus dearness allowance, matched by the state, with investments in PFRDA-approved pension funds and market-linked returns. Currently, around 9.5 lakh state employees who joined the service before November 2005 already enjoy OPS benefits.

In addition to this significant decision, the cabinet approved several other proposals:

1. Mumbai Trans Harbour Link Toll: The cabinet approved a toll of ₹250 for cars using the Mumbai Trans Harbour Link (MTHL), the country’s longest sea bridge, connecting Sewri in Mumbai to Nhava Sheva in Raigad district. The MTHL is set to be inaugurated by Prime Minister Narendra Modi on January 12, substantially reducing travel time.

2. Subsidy for Milk Producers: A proposal to provide a ₹5 per litre subsidy to milk producers in the state was approved, as announced during the winter session of the state legislature last month.

3. Allowance for Clerks-Typists: Clerks-typists working in the Mantralaya will receive a monthly allowance of ₹5,000 in addition to their existing remuneration.

These decisions address various concerns and demands raised by different segments of the population, reflecting the government’s commitment to addressing the needs of state employees, commuters, and the agricultural sector.