Punjab govt extends OPS panel’s term by 4 months

The extension to the committee headed by the chief secretary has been granted to comprehensively examine the administrative feasibility, financial implications, and operational modalities for the implementation of the modified pension scheme after through examination of the Unified Pension Scheme (UPS)

The Punjab government has granted a four-month extension to a committee constituted to formulate the standard operating procedure for the restoration of the old pension scheme (OPS), while clarifying that the model being considered would be “contributory” in nature.

UPS was approved by the Union cabinet for central government employees in August 2024 with enhanced benefits. (HT)

The extension to the committee headed by the chief secretary has been granted to comprehensively examine the administrative feasibility, financial implications, and operational modalities for the implementation of the modified pension scheme after through examination of the Unified Pension Scheme (UPS) and best practices being followed in other states, and recommend any other alternative pension model for the state, according to an order issued by the additional chief secretary, finance. The state government had notified the restoration of OPS four years ago.

A department official said that OPS was benefit-oriented and funded from the budget, but the model being considered was contributory in nature to the pattern of UPS and New Pension Scheme (NPS) with benefits of the original scheme. “Details such as extent of contribution, who will contribute, pension amount will be worked out by the committee. In all probability , it will be a mix of defined benefits schemes and the contributory model,” he said. UPS was approved by the Union cabinet for central government employees in August 2024 with enhanced benefits. The scheme guarantees assured pension of 50% of the employee’s average basic pay drawn over the last 12 months before superannuation for a minimum qualifying service of 25 years; assured minimum pension of ₹10,000 per months in case of superannuation after 10 years of service; family pension of 60% of pension last drawn for immediate family upon a retiree’s death; inflation indexation; and lump sum payment at superannuation in addition to gratuity.