Punjab Cupboard to take name on outdated pension scheme tomorrow

Punjab Cupboard to take name on outdated pension scheme tomorrow

Tribune Information Service

Ruchika M Khanna

Chandigarh, November 16

The state authorities is all set to concern a notification for the implementation of the outdated pension scheme, after getting it authorised from the Council of Ministers of their assembly scheduled on Friday. This notification is being issued simply in time — earlier than the elections to the Gujarat Vidhan Sabha are held.

Cautious of “politically motivated” staff attempting to create hurdles within the ruling social gathering’s possibilities of success on the hustings in Gujarat, the place AAP is testing political waters, the state authorities has determined to concern the notification instantly. The social gathering believes that it will assist it in getting extra votes within the western state.

Although the federal government had introduced that it might go for the outdated pension scheme final month, the small print of how they proposed to implement the scheme are actually being labored out by the state Finance Division.

Sources say the true problem lies in getting the

Rs 17,000 crore corpus deposited with the Pension Fund Regulatory and Growth Authority again, to assist revert to the outdated pension scheme. This corpus has been raised with the contribution made by staff (10 per cent of their wage) and the employer — the state authorities — which contributes 14 per cent of the wage in the direction of pension.

“We must urge the Centre to refund the cash, however it’s their discretion when and the way they may accomplish that. The switchover to the outdated pension scheme relies on this,” stated a senior functionary within the Finance Division.

Punjab was among the many first states to have converted to the New Pension Scheme in 2004. When the scheme was initially rolled out, it was not obligatory for all states to hitch.

Official sources say there are not any speedy monetary implications of the rollout of the scheme because the New Pension Scheme got here into pressure solely from April 1, 2004. In consequence, these coated underneath the scheme will retire 2032 onwards.

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