Andhra Pradesh Government Introduces Revolutionary Pension Scheme: 50% of Last Drawn Salary to be Granted as Retirement Benefits The Andhra Pradesh cabinet, led by Chief Minister YS Jagan Mohan Reddy, made a significant decision on Wednesday by approving the implementation of the Guaranteed Pension Scheme (GPS). Under this progressive scheme, government employees will be entitled to a pension equivalent to 50% of their last drawn salary. The introduction of the GPS marks a departure from the existing Contributory Pension Scheme (CPS), which has been a subject of prolonged protests among state government employees. This new initiative is in line with the restoration of the Old Pension Scheme, previously implemented in states such as Rajasthan, Chhattisgarh, and Himachal Pradesh.
In response to the demands of the government employees, who have long been advocating for the replacement of the CPS with the GPS, Chief Minister Jagan Mohan Reddy had pledged to implement this change ahead of the 2019 state assembly elections. The Guaranteed Pension Scheme ensures a gradual growth of the dearness allowance (DA) for government employees, guaranteeing a secure and substantial pension after retirement. The cabinet has approved a bill to enact this scheme, reflecting the government’s commitment to the welfare and financial security of its employees.
In another move aimed at winning the support of government employees in the upcoming state assembly elections in 2024, the cabinet has also decided to regularize all 10,000 contractual employees who have completed at least five years of service before June 2, 2014, the date of Andhra Pradesh’s bifurcation into two separate states, Andhra and Telangana.
Furthermore, the cabinet has sanctioned the creation of 6,840 new posts across various departments to strengthen the state’s workforce. Additionally, it has approved the government’s decision to dissolve the Vidya Vidhan Parishath and treat its 14,653 employees as government employees, who will be transferred to the Directorate of Secondary Health. The cabinet has also granted approval for the establishment of 2,118 new posts in medical colleges.
As part of the comprehensive benefits package for government employees, the cabinet has decided to enhance the house rent allowance (HRA) from 12% to 16% for those working in district headquarters. Additionally, the dearness allowance (DA) will be increased by 2.73%, with arrears being paid from January 1, 2022. These improvements in compensation will impose an additional financial burden of ₹200 crore per month on the state’s finances, highlighting the government’s commitment to the well-being of its employees.
Moreover, the cabinet has made several other significant decisions, including the creation of new posts in various departments and the establishment of junior colleges in every block of the state. With the objective of enhancing the English communication skills of students, the government has decided to provide training to students from grades 3 to 9 and conduct three preparatory examinations to help them face the Test of English as a Foreign Language (TOEFL). If necessary, teachers will be sent to the United States for specialized training to further improve the quality of education in the state.
Andhra Pradesh Government Implements Revolutionary Guaranteed Pension Scheme and Welfare Measures
In a move to support dairy farmers in the cooperative sector, the cabinet has approved the allocation of 28.35 acres of land on a 99-year lease to the Chittoor Dairy. This decision aims to promote the growth and prosperity of dairy farmers in the region. Additionally, the cabinet has endorsed the green hydrogen and ammonia policy and granted approval for the establishment of a 300 MW green energy plant in the private sector, with an investment of ₹300 crore, in the Satya Sai District.
The cabinet has also made a decision regarding the management of temples with an annual income of less than ₹5 lakh. For a period of five years, the management of these temples will be handed over to their respective committees. This step aims to empower the temple Archakas and local committees, allowing them to effectively oversee the operations of these temples.
The Andhra Pradesh government‘s introduction of the Guaranteed Pension Scheme, along with its various other welfare initiatives, exemplifies its commitment to the holistic development and prosperity of its employees and citizens. With these transformative measures, the government aims to create a more inclusive and progressive society in Andhra Pradesh.
