Assured Pension Scheme for government employees announced by Kerala government: 50% pension, key features and eligibility explained

The Kerala government has launched the Assured Pension Scheme (APS) for its employees with effect from April 1, 2026. With the new scheme, state government employees, existing and new, can join either the National Pension System (NPS) or assured pension scheme.
APS will be on the lines of Unified Pension Scheme (UPS) in the central government, where employees, after completing fixed years of service, are eligible to get a basic pension of 50% of their last-drawn basic pay at the time of retirement. Let’s find out more about APS of the Kerala government. What is assured pension scheme in the Kerala government?APS is for the existing Kerala state government employees and those who are appointed on or after April 1, 2026.Is APS mandatory for all Kerala government employees?No, it is not mandatory for all Kerala government employees. They can either join NPS, which is mandatory for Kerala government employees who joined their service on or after April 1, 2013, or opt for APS.
What are the pension options for current Kerala government employees?As per the notification of the Kerala government, existing state government employees covered under NPS are eligible to exercise option for changing from the existing NPS to APS. What is the maximum pension allowed in the Kerala government’s APS?The notification says that the maximum assured pension allowed in the scheme will be 50% of the basic pay at the time of retirement.
What should be the minimum qualifying service to get 50% pension under the Kerala government’s APS?
The minimum service to get 50% pension under APS in Kerala will be 30 years. This is unlike UPS, where an employee can get a 50% assured pension after completing 25 years of service. Many employee associations in India are demanding to reduce this number to 20 years. Yes, Kerala government pensioners will keep getting dearness relief under the scheme. This is like Old Pension Scheme (OPS) where pensioners get DR as per the numbers announced by the respective state governments.
What is the National Pension Scheme (NPS)?NPS is a government-backed retirement savings scheme where a state or a central government employee or an individual can invest during your working years to get income after retirement. Contributions to the scheme provide tax benefits under the old and new tax regimes and also offer flexible investment choices.

NPS benefits include retirement income security and long-term growth potential.

What is the Unified Pension Scheme (UPS)?Centre introduced UPS as an option under NPS for central government employees with effect from April 1, 2025. The scheme seeks to ensure financial security, stability, and dignity for government employees after retirement, safeguarding their future well-being.

Government employees who are covered by NPS can either remain with it or transition to UPS. However, once a central government employee selects UPS, the choice is permanent and cannot be reversed.

Implementation of UPS for state government employees is still under discussion. States have the flexibility to adopt the scheme, but no formal decisions have been finalised as of now.