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


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.

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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.

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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.

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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.


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