AP Guaranteed Pension Scheme:- The government of Andhra Pradesh will introduce a new Guaranteed Pension Scheme (GPS) for its employees. A new GPS will replace the current Contributory Pension Scheme (CPS), which was abolished by the Cabinet. All State government employees shall be eligible for a guaranteed monthly pension which is equal to 50% of their most recent basic wage under the new scheme. Further information related to Andra Pradesh Guaranteed Pension Scheme is mentioned below in this article.
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AP Guaranteed Pension Scheme 2023
Andhra Pradesh is the first state to implement the Guaranteed Pension Scheme system. This system will serve as a “role model” for other states. The AP Guaranteed Pension Bill 2023, which would replace the Contributory Pension Scheme (CPS), is the new pension plan that the government has proposed for public employees. According to this new bill, government employees will receive a higher Daily Allowance (DA) without seeing their 50% post-retirement pension reduced.
Andra Pradesh Guaranteed Pension Scheme Details
|Name of the scheme||AP Guaranteed Pension Scheme|
|Objective||To provide a higher Daily Allowance (DA)|
|Beneficiaries||All State government employees|
Features of AP Guaranteed Pension Scheme
Following are the features of AP Guaranteed Pension Scheme.
- The Andhra model has two main recommendations. First, the state government will guarantee a pension of 33% of the last received income in exchange for a contribution from the state of 10% of the basic salary, which the central government will match. If employees are ready to contribute a higher 14%, which will once again be equally matched by the state government, the following proposal is a guaranteed pension of 40% of the last collected income.
- The development follows a similar call from state government workers to abandon the New Pension Scheme (NPS), also known as the Contributory Pension Scheme (CPS), and switch back to the OPS. Government worker who participates in the OPS is entitled to a monthly pension that is equal to half of their final wage till the end of their lives. The employees didn’t need to contribute anything.
- Along with an increase starting at 7.5% for every five years until the employee’s death, which will also be extended to his or her spouse, the government will also pay a dearness allowance on the pension amount.
Objectives of AP Guaranteed Pension Scheme
- The amount of the pension will increase due to the addition of dearness relief (DR) which will occur twice a year.
- For instance, if an employee retires at age 62 and receives a monthly pension of ₹50,000 under the GPS, he would receive close to ₹1.20 lakh when he turned 82.
- Examining the viability of the so-called “Andhra model” of the guaranteed pension plan (GPS), which was put forth in April 2022, is one of the areas of interest for this committee.
Eligibility Criteria for Andra Pradesh Guaranteed Pension Scheme
Following are the eligibility criteria for AP Guaranteed Pension Scheme.
- All State government employees will be eligible for a guaranteed monthly pension equal to 50% of their most recent basic wage under the new plan.
Application Process for AP Guaranteed Pension Scheme
As of now, the Andra Pradesh government has not notified the official website yet. Once the official website is open, eligible applicants for the scheme can go to the website and register themselves there. After that, they would be able to apply for the AP Guaranteed Pension Scheme.