Chandigarh, October 21
The Punjab Cabinet on Friday approved restoration of the old pension scheme, with Chief Minister Bhagwant Mann terming it a Diwali gift for the staff. The move will benefit nearly 1.75 lakh state government employees.
Rs 11,000 cr current pension bill
2.87 lakh getting pension under old scheme
18 years ago in 2004, replaced with NPS
Rs 11,000 cr current pension bill
1.75 lakh staffers to benefit from move
Rs 2.63 lakh cr state's estimated debt
"We have taken an in-principle decision to this effect. This will benefit lakhs of employees," CM Mann said, adding the modalities of the old pension scheme would be worked out soon.
The restoration of the old pension scheme, which was discontinued in 2004, has been a major demand of the state government employees.
An official said the employees would be given the option for adopting the old or the new pension scheme. Already, nearly 2.87 lakh employees are getting pension under the old scheme.
Keeping promises
A long-pending demand has been met. It's a Diwali gift for the employees. We are fulfilling our promises. Bhagwant Mann, Chief Minister
The government's decision has come ahead of the Himachal Pradesh and Gujarat Assembly polls, where AAP is trying its luck and promised to restore the old pension scheme for state government employees, if voted to power.
In another decision, the Punjab Cabinet decided to give 6 per cent dearness allowance (DA) to employees and pensioners with effect from October 1 this year.
"It's a Diwali gift for them. We are fulfilling our promises," the CM said.
The Council of Ministers opined the employees were a critical segment and safeguarding their interests was the government's priority.
No immediate impact
n Since old pension scheme has been restored for staff recruited after 2004, the impact on exchequer will be felt by 2030
Old vs New Scheme
- Under old pension scheme, pension equals 50% of the last salary drawn and entire amount is paid by the government
- As per new or contributory pension scheme, employees contribute 10% of salary and govt 14% towards pension fund
6% DA from Oct 1
In another decision, the Punjab Cabinet has decided to give 6 per cent dearness allowance to govt employees and pensioners with effect from October 1
from The Tribune https://ift.tt/rcI6b5L
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