Punjab cabinet approves old pension scheme, issues notice, says CM Bhagwant Mann

0
8

On Friday, Punjab Prime Minister Bhagwant Mann said the state cabinet has approved the reintroduction of the old pension scheme, which was discontinued in 2004.

Asked about the old pension scheme, Mann, who held a press conference after the cabinet meeting, said: “OPS has been approved by the cabinet. Details will be given. Many employees will benefit from the old pension scheme. A notification has been issued.”

An official statement said the decision will directly benefit more than 1.75 lakh government employees.

ALSO READ  Stripped, Beaten, Sexually Abused: What Happened to Himank Bansal, Hyderabad Student Forced to Sing 'Allah Hu Akbar'

READ | Video of IPS Abhishek Pallava’s luxury government bungalow is going viral, watch here

To ensure that the scheme remains financially sustainable for the Treasury in the future, the state government will proactively contribute to the creation of a pension corpus that will continue to serve the retirees.

The contribution to the pension corpus will initially be Rs 1,000 crore per annum and will be gradually increased.

ALSO READ  IAS Tina Dabi scolds contractor as she conducts surprise inspection at Jaisalmer hospital

READ | ‘Show what their…’: BJP chief JP Nadda lashes out at Rahul Gandhi over comments against Veer Savarkar

In addition, the current accrued corpus of the new pension scheme, or NPS, is Rs 16,746 crore, which the state government will ask the Pension Fund Regulatory and Development Authority (PFRDA), a central body, for repayment.

The old pension scheme, where the entire pension amount was given by the government, was discontinued in the country on April 1, 2004.

ALSO READ  Shraddha Walkar murder case: when reel inspired real crimes in India

Under the new scheme, employees contribute 10 percent of their base salary to their retirement, while the state government contributes 14 percent.

The decision by the AAP government came days before Gujarat Assembly polls, where AAP tried its luck and had pledged to reinstate the state government’s old pension scheme for employees if they came to power.

LEAVE A REPLY

Please enter your comment!
Please enter your name here