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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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.
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