The Punjab Cabinet has approved the restoration of Old Pension Scheme. The cabinet meeting took place on Friday where the decision to restore the scheme was taken. Subsequently, an official notification will be released. After facing several demands from the government employees, the Punjab government took the decision to restore the Old Pension Scheme.
Earlier, while quashing the new pension scheme, Rajasthan, Chhattisgarh and Jharkhand too went back to the Old Pension Scheme.
Under the old pension 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.
The old pension scheme was discontinued in December 2003, and the new pension scheme came into effect on April 1, 2004.