Guaranteed Pension Scheme in Andhra Pradesh

 

In the backdrop of transition from New Pension Scheme to Old Pension Scheme in opposition led state, Jagan led Andhra Pradesh govt has come out of Innovative Guaranteed Pension Scheme with the option of 33% and 40% of last drawn basic pay as a pension. 

While the Old Pension Scheme assures 50% of last drawn basic pay as pension,Guaranteed Pension Scheme is going to provide two options first with 33% of last drawn basic pay as pension with 10% monthly contribution from employee and Second, 40% of last drawn basic pay as pension with 14% monthly contribution from employee with the same(10%,14%) will be matched by State government.

As the Old Pension Scheme has become unsustainable for states the Guaranteed Pension Scheme is coming out as a relief to the states economy and as an alternative to Old Pension Scheme.