Eye on poll-bound states, Punjab’s AAP govt gives nod to restore old pension scheme, clears 6% DA

He said the employees will be given the option of adopting the old pension scheme or the current one. He said that modalities of the old pension scheme for the employees will be worked out.

The restoration of the old pension scheme, which was discontinued in 2004, has been a major demand of state government employees.

The state government’s decision has come ahead of the Himachal Pradesh and Gujarat Assembly polls, where AAP is trying its luck. Delhi Chief Minister Arvind Kejriwal promised that the AAP would restore the old pension scheme in the two poll-bound states, if it is voted to power in the upcoming polls. He termed the new pension scheme “unfair”.

“We had promised that we would implement the old pension scheme in Punjab. Today Bhagwant Mann fulfilled the promise. Congratulations to all the employees of Punjab,” Kejriwal, who is also the Aam Aadmi Party national convenor, said in a tweet in Hindi.

The old pension scheme should be restored and implemented all over the country, he said. “If the people of Himachal Pradesh and Gujarat give (us) a chance, we will implement OPS (old pension scheme) there too,” Kejriwal added.

A Punjab government statement later said that employees are the backbone of the government and the AAP dispensation “has taken this historic decision” which will benefit all the employees.

Under the old scheme, a government employee is entitled to a monthly pension after retirement. The monthly pension is typically half of the last drawn salary of the person. Under the new pension scheme, employees contribute a portion of their salaries to the pension fund. Based on that, they are entitled to a one-time lump sum amount on superannuation.

Rajasthan, Chhattisgarh and Jharkhand have already announced to restore the old pension scheme.

Meanwhile, the Cabinet decision to give 6 per cent DA to government employees and pensioners, with effect from October 1, would cost the exchequer Rs 200 crore annually.

Finance Minister Harpal Singh Cheema and Housing and Urban Development Minister hailed the “historic decisions”, which, they said will benefit lakhs of employees and pensioners.

The Council of Ministers opined that the employees are a critical segment of the state administration and safeguarding their interests was the government’s top priority, it added.