Kerala’s Assured Pension Scheme explained: NPS options, eligibility, benefits, and other details here

The Government of Kerala has issued formal orders to implement the Assured Pension Scheme (APS) for state government employees with effect from April 1, 2026. The decision follows the announcement made in the 2026–27 Budget to introduce the new scheme in place of the existing National Pension System (NPS).

The order, issued by the Finance (Pension-A) Department on February 28, 2026, grants in-principle sanction for the rollout of the new pension framework.

Shift from NPS

In the 2026 Budget Speech, the Finance Minister announced that an Assured Pension Scheme would be introduced for state government employees instead of the NPS.

Who can opt for the Assured Pension Scheme?

The order clearly lays down eligibility and options:

-Continuing under the National Pension System (NPS), or

• Opting for the new Assured Pension Scheme.

State government employees currently covered under the NPS will also be allowed to switch to the Assured Pension Scheme.

Key Features of the Assured Pension Scheme

• Maximum pension

• 50 per cent of the basic pay at the time of retirement,

• Subject to a ceiling of 50 per cent of the maximum of the highest scale of pay under the State Government,

• Provided the employee has completed 30 years of qualifying service.

Dearness Relief

Service requirement

To be eligible for the maximum assured pension, employees must complete 30 years of qualifying service.

Detailed guidelines to follow

The government has clarified that detailed orders covering various operational aspects of the Assured Pension Scheme will be issued separately.

The order was issued by the Finance Department at the Governor's direction.