Andhra Pradesh’s Guaranteed Pension Scheme catches eye of Centre

The scheme was proposed for the first time in April 2022 and offers a guaranteed pension of 33 per cent of the last drawn basic pay without any deduction to the state government employees.

Amaravati: Andhra Pradesh‘s Guaranteed Pension Scheme (GPS) has caught the eye of the Centre as it is said to have the best of both the Old Pension Scheme (OPS) and the New Pension Scheme (NPS) elements.

According reports, the officials believe the scheme “is interesting”, although it needs to be studied in detail.

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The scheme was proposed for the first time in April 2022 and offers a guaranteed pension of 33 per cent of the last drawn basic pay without any deduction to the state government employees. For this, they would need to contribute 10 percent of their basic salary every month, and the state government will match it.

If the employee is willing to contribute a higher 14 per cent every month, they will receive a guaranteed pension of 40 percent of their last drawn salary.

The market conditions will not influence the pension under GPS, which is nearly 70 per cent higher than the current pension being offered under CPS, in line with the current interest rates, according to AP Finance Minister Buggana Rajendranath.