Maharashtra Government took a decision to implement the Defined Contribution Pension Scheme made applicable by the Central Government with effect from 01/04/2004. In persuasion of this decision, Government Resolution dated 31/10/2005 made this scheme applicable with effect from 01/11/2005.

The procedure for implementation of this scheme has been prescribed in the Government Resolution dated 07/07/2007. It is mandatory for every employee joining government service on or after 01/11/2005 to subscribe to the scheme.

For this purpose such employee has to apply in the prescribed format to the concerned Treasury through his respective office and obtain specific Pension Account Number. From the salary of the month next to the month of joining government service by such employee, contribution of an amount of 10% of the total amount comprising Basic Pay + Dearness Pay (if applicable) + Dearness Allowance is deducted. Matching contribution is deposited by the government. Presently interest at specified rate is allowed by the government on the total accumulation. Central Government has ordered to invest the amount of employees’ contribution and employer’s matching contribution and to appropriate the income so received to the account of each employee in proportion to his investment.  It is expected that this decision will be implemented in Maharashtra in the near future.

This Scheme has also been made applicable to the employees of Zilla Parishads, Aided & Recognized Primary & Secondary Educational Institutions, Aided & Recognized Agriculture & Non Agriculture Universities and other institutions there under, apart from government employees.  However, deductions from such employees has not yet started.

Deductions under the Scheme has started from September, 2007 and arrears for previous period are being deducted monthly at the rate of deduction for one month along with the deduction for the current month.  86,885 government employees have been registered under this scheme till date (position as at the end of February, 2010).

Details of yearly receipts under this Scheme have been shown in the following table:-