Punjab Government increases participation in pension plan

Chandigarh, December 2 () The Punjab cabinet decided on Monday to increase its participation in the National Pension Plan from 10 percent of the basic salary and the allocation of expenses to 14 percent, in line with a move from the Center a few months ago .

The four percentage point increase in government contribution comes after the demands of workers' unions and will cost the state an additional rupee of Rs 258 each year.

It will be effective as of April 1, 2019, according to a government statement.

Previously, the state government had to match the minimum 10 percent contribution made by its employees who are part of the plan.

The state government has 3.53,074 employees. Of these, 1.52,646 are covered by the new National Pension Plan (NPS).

This decision is in line with the notification issued by the Ministry of Finance of the Union on January 31, according to a press release from the Punjab government.

The government also agreed to give the benefit of the tip for death and retirement to all state government employees recruited as of January 1, 2004 and covered by the national pension plan, he said.

Dependents of employees recruited after this date will also receive ex-gratia benefits granted under the previous pension scheme.

The annual expenditure due to the 10 percent contribution from the state government for employees covered by the NPS was Rs 585 million in the 2018-19 fiscal year. This year, it was going to increase to Rs 645 crore. Increasing participation to 14 percent will mean an additional rupee of 285 rupees this year, the government said. CHS ASH ASH