Kerala govt. issues orders for implementing Assured Pension Scheme from April 1

The Kerala government has issued orders giving its in principle sanction for the Assured Pension Scheme (APS) to be implemented from April 1 this year.

The maximum assured pension will be 50% of the basic pay at the time of retirement. This will be subject to 50% of the maximum of the highest scale of pay under State government provided that the employee has completed 30 years of qualifying service, the Finance department said in a February 28 order.

Dearness relief (DR) will be allowed on the assured pension.

Employees appointed on or after April 1, 2026, will be eligible to opt for either the National Pension System (NPS) or ASP. Existing State government employees covered under NPS will have the choice of changing from NPS to APS.

Detailed orders covering various aspects of the APS will be issued separately, the Finance department said.

In the 2025-26 State Budget, the government had announced plans for introducing the APS instead of contributory pension scheme for government employees. In the 2026-27 Budget, Finance Minister K.N. Balagopal had announced that it would be implemented from April 1 this year.