The Punjab Government decided to restore the old pension scheme for its employees. Chief Minister Bhagwant Mann announced that the government has decided to implement the old pension scheme as a Diwali gift for its employees. The decision was taken as an in-principle decision to the effect of the cabinet meeting. The decision aims to benefit lakhs of employees.
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Key Points related to Old Pension Scheme in Punjab
- Finance Minister Harpal Singh Cheema said that the employees will be given the option to join the old pension scheme.
- The government was considering restoring the scheme for government employees for a month.
- Restoration of the old pension scheme was discontinued in 2004 and it has been one of the major demands of state government employees.
Old Pension Scheme in Punjab
The old pension scheme of the government referred to as the Defined Benefit Pension System (DBPS) based on the last pay drawn by the employee. The New Pension Scheme is referred to as the Defined Contribution Pension System (DCPS), in which the employer and employee contribution to build a pension wealth payable at the time of retirement by way of annuity withdrawal as per norms.