Assured Pension Scheme for government employees announced by Kerala government: 50% pension, key features and eligibility explained

The Kerala government has launched the Assured Pension Scheme (APS) for its employees with effect from April 1, 2026. Under the new scheme, both current and new state government employees can opt for either the National Pension System (NPS) or the assured pension scheme.

The APS is modelled after the Unified Pension Scheme (UPS) from the central government, where employees, after completing fixed years of service, are eligible to get a basic pension of 50% of their last-drawn basic pay at the time of retirement. Let’s find out more about APS of the Kerala government.

What is assured pension scheme in the Kerala government?

APS is for the existing Kerala state government employees and those who are appointed on or after April 1, 2026.

Is APS mandatory for all Kerala government employees?

No, it is not mandatory for all Kerala government employees. They can either opt for NPS, which is mandatory for Kerala government employees who joined their service on or after April 1, 2013, or opt for APS.

What are the pension options for current Kerala government employees?

As per the Kerala government notification, existing state government employees covered under NPS can opt for switching from the existing NPS to APS.

What is the maximum pension allowed under Kerala government’s APS?

The notification says that the maximum assured pension allowed in the scheme will be 50% of the basic pay at the time of retirement.

What would be the minimum qualifying service to get 50% pension under the Kerala government’s APS?

To qualify for a 50% pension under APS in Kerala, you need to have at least 30 years of service. This is different from UPS, where you can get 50% assured pension after working for 25 years. Many employee associations in India are pushing to lower this requirement to 20 years.

Will Kerala government pensioners get dearness relief under APS?

Yes, Kerala government pensioners will keep getting dearness relief under the scheme. This is like Old Pension Scheme (OPS) where pensioners get DR according to the numbers announced by the respective state governments.

What is the National Pension Scheme (NPS)?

NPS is a government-backed retirement savings scheme where you as a state or a central government employee or an individual can invest during your working years to get income after retirement. Contributions to the scheme provide tax benefits under the old and new tax regimes and also offer flexible investment choices.

NPS benefits include retirement income security and long-term growth potential.

What is the Unified Pension Scheme (UPS)?

Centre introduced UPS as an option under NPS for central government employees with effect from April 1, 2025. The scheme seeks to ensure financial security, stability, and dignity for government employees after retirement, safeguarding their future well-being.

Government employees who are covered by NPS can either remain with it or transition to UPS. However, once a central government employee selects UPS, the choice is permanent and cannot be reversed.

Implementation of UPS for state government employees is still under discussion. States have the flexibility to adopt the scheme, but no formal decisions have been taken as of now.