The old pension program (OPS), which was abandoned in 2004, has been reinstated with the approval of the Punjab Cabinet, which is chaired by CM Bhagwant Mann. A warning has been sent out.

More than 1.75 lakh government workers who are now enrolled in the new pension plan would profit from the decision, according to a spokeswoman for the Chief Minister’s Office (NPS). Additionally, the current OPS already provides coverage to 1.26 lakh workers. Over 4,100 people are anticipated to gain from the plan in only the next five years. The state government would make proactive contributions to the pension corpus, the spokeswoman added, to guarantee that the newly created program is financially viable for the exchequer.

Initial and escalating contributions to the pension corpus will total Rs 1,000 crore annually. The state government would ask the Pension Fund Regulatory and Development Authority (PFRDA), a central organization, to repay the present accumulated corpus with the NPS, which is Rs 16,746 crore.

The Cabinet reaffirmed its unequivocal commitment to ensuring that the plan will be rendered self-sustaining using the funds available to the exchequer.

Pension corpus

The Rs 1,000-cr contribution per annum to the pension corpus will be increased gradually
In addition, the corpus with NPS is Rs 16,746 cr; the state will seek a refund of this amount
1.75 lakh govt employees covered under NPS to benefit from a decision

1.26 lakh employees already covered under OPS

4,100 employees to benefit in the next 5 years

It will be a difficult task for the state to switch over to OPS
The Rs 16,746 cr donated by workers and the government since April 2004, when NPS was formed, is unlikely to be released by Pension Fund Regulatory and Development Authority.