Punjab Government is considering reverting to the Old Pension Scheme
Punjab Chief Minister Bhagwant Mann on September 19 said his government is considering restoring the old pension scheme for government employees.
Tweet from CM
“My government is considering reverting to the Old Pension System (OPS). I have asked my Chief Secretary to study the feasibility and modalities of it’s implementation. We stand committed to the welfare of our employees.”
Also Read: Anomalies in Commutation of Pension: Revised third commutation table is due from 2018
What is the old pension scheme?
The old pension scheme was discontinued on April 1, 2004, and replaced with the National Pension Scheme. In the old pension regime, pension was 50% of the last drawn salary of the employee and the entire amount was paid by the government. The national pension scheme (NPS) or contributory pension scheme is effective for the employees who joined on or after April 1, 2004. Under this scheme, the employees contribute 10 per cent of their salary towards pension and the state government contributes 14 per cent. The amount is then deposited with PFRDA where it is invested.
Follow us on Telegram Channel for all the latest updates
The National Pension Scheme (NPS) is applicable to the Central Government Employees who joined on 01st January, 2004 and not from 01st April, 2004 as mentioned in the above note. Thank you