Eyeing the Gujarat elections, Punjab CM Bhagwant Mann-led AAP government on Friday approved the notification to implement the Old Pension Scheme (OPS) in Punjab, which will directly benefit over 1.75 lakh government employees. This decision was taken in the meeting of the Council of Ministers headed by the Chief Minister.
long pending demand
Giving this information, a spokesman of the Chief Minister’s Office said that fulfilling the long pending demand of the employees of the state, the government has approved OPS for its employees covered under New Pension Scheme (NPS). This will directly benefit over 1.75 lakh employees currently covered under NPS. In addition, 1.26 lakh personnel are already covered under the existing OPS.
The objective of this scheme is to safeguard the future of government employees and to recognize their contribution towards the state. In order to ensure that the scheme being launched is financially sustainable for the exchequer in future as well, the government will actively contribute towards the creation of a pension fund which will provide pension in future to the beneficiaries of the scheme.
Initially Rs 1000 crore will be contributed
The contribution to the Pension Corps will initially be Rs 1,000 crore per annum and will increase gradually in future. Further, the current accumulated corpus with NPS is Rs 16,746 crore, for which the State will request the Pension Fund Regulatory and Development Authority, Government of India, to refund this amount for effective utilisation.
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