The Kerala government on Saturday issued orders implementing the "Defined Pension Scheme" for its employees from April 1, 2026. This decision follows Finance Minister K.N. Balagopal's announcement in the state budget, which stated that a "Defined Pension Scheme" would replace the National Pension System (NPS) with a guaranteed minimum pension.

Employees can choose the "Defined Pension Scheme."

According to information provided by the minister's office, employees joining government service from April 1, 2026, can choose the "Defined Pension Scheme" or remain under the NPS.

Balagopal said in a statement that existing employees currently enrolled under the NPS will also be given the option to switch to the "Defined Pension Scheme." The maximum pension under this scheme will be 50 percent of the basic pay drawn at the time of retirement, determined based on the pay scale approved by the state government. In addition to the pension amount, dearness relief (DR) will also be payable.

Must complete 30 years of service

To be eligible for the maximum pension, employees must complete 30 years of qualifying service. The Minister clarified that detailed guidelines for the scheme will be issued separately.

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