Kerala Assured Pension Scheme 2026 Approved: NPS Optional from 1 April 2026

In a major decision impacting State Government employees, the Government of Kerala has accorded in-principle sanction for implementing the Assured Pension Scheme (APS) in place of the National Pension System (NPS).

As per G.O.(P) No.33/2026/FIN dated 28.02.2026, issued by the Finance (Pension-A) Department, the scheme will come into effect from 01 April 2026.

This move follows the announcement made in the Budget Speech 2026-27.

Let us examine the official order and its implications in detail.

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Background: From NPS to Assured Pension Scheme

Kerala had made the National Pension System (NPS) mandatory for appointments made on or after 01.04.2013, as per earlier Government Orders.

Now, based on the Budget 2026-27 announcement, the Government has decided to introduce a new pension scheme titled:

“Assured Pension Scheme” (APS)

This scheme will function as an alternative to NPS for State Government employees.

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Effective Date

The Assured Pension Scheme will be implemented with effect from:

📅 01 April 2026

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Who is Eligible?

The Government Order clearly specifies the following categories:

1️⃣ Employees Appointed On or After 01.04.2026

• Eligible to opt either:
  • National Pension System (NPS) OR
  • Assured Pension Scheme (APS)

This means NPS will no longer be compulsory for new recruits after 01.04.2026.

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2️⃣ Existing Employees Under NPS

• State Government employees currently covered under NPS
• Can exercise an option to switch from:
  • Existing NPS → Assured Pension Scheme

This is a significant provision allowing migration from NPS to APS.

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Pension Benefits Under Assured Pension Scheme

As per the Government Order, the following key provisions apply:

✅ Maximum Assured Pension

• 50% of Basic Pay at the time of retirement
• Subject to:
  • 50% of the maximum of the highest scale of pay under State Government

✅ Service Requirement

• Employee must have completed:
  • 30 years of qualifying service

✅ Dearness Relief (DR)

• Dearness Relief will be allowed on the assured pension.

This indicates that pensioners under APS will receive DR revisions similar to traditional pension structures.

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Detailed Orders to Follow

The Government Order clarifies that:

Detailed orders regarding implementation aspects will be issued separately.

Therefore, procedural guidelines, option forms, migration rules, financial adjustments, and accounting mechanisms are expected in subsequent Government Orders.