Open House: How do you view the restoration of old pension scheme for govt employees?

Pension not favour or grant

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The Mughals used to give jagirs to their favourites in the government. Regular salary, increment, pension and allowances etc were British terms and the earliest beneficiaries were those who had fought in World War WW I under the British government. After independence, our leaders extended the benefit of pension to all state employees who complete a minimum length of service. There is no discrimination on any count and the pension cannot be stopped or attached The system was well oiled and worked perfectly well to ensure family happiness after the retirement of the government servant. In fact, there is provision even for family pension payable to his wife if the pensioner dies. The idea is that it is not any favour or grant. It is deferred payment. I don’t think that the earlier Capt Amarinder Singh government really applied its mind when it discontinued and abolished the scheme applicable to Punjab government employees retiring after 2004. The Badal government gave pension to teachers working in private schools, but the provision was inexplicably withdrawn from college teachers working in privately managed affiliated institutions. The case is sub-judice in the Supreme Court. Now, if the AAP government has decided to revive the scheme to Punjab government employees, it will be most welcome. Funds for the same should not be an excuse.

Prof Mohan Singh

QUESTION

With over 5,000 cases and five deaths due to dengue in the state so far, Chief Minister Bhagwant Mann has directed the Health Department to intensify efforts to prevent vector-borne diseases. What steps can be taken to contain the spread of dengue?

Suggestions in not more than 200 words can be sent to amritsardesk@tribunemail.com by Thursday (November 3)

Generate resources for pension

It is the duty of every democratically elected government to spend money on the welfare of the public. But it is eventually important to take care of the financial health of the state. In our state as per an official report prepared by a former judge of the High Court and former DGP, 6 lakh acres of government land has been illegally encroached upon. The present regime when it came to power in March this year started a campaign to get it vacated but soon this plan fizzled out. So if the present government wishes to give some financial benefits to different sections of society, it should also work vigorously to generate resources for the same. Just imagine how much money the state government would get if the 6 lakh acres of illegally occupied land is vacated. Hope the state government would act in this regard.

Naresh Johar

Decision not endearing

There is no denying the fact that everyone needs financial stability after retirement. Getting a government job is not a piece of cake in India, especially in Punjab. If someone gets a permanent job, he expects a pension to safeguard his future and it is not so. However, considering the present situation of Punjab, where most of the youngsters are unemployed and others who are employed in private sectors are getting a negligible amount, the case is to the contrary. They strive by working for 10 hours each day to earn their livelihood and barely manage their expenses. The private sector is exploiting the employees to its fullest and nobody cares for them. When the government is not doing anything for such people on the pretext of inadequate funds in the treasury for them, then why only for them who are already well-paid? It is like the government is promoting the rich to become richer and the poor, poorer. It is completely unfair for those who are compelled to set up tea stalls even after doing their Masters. By restoring the old pension scheme, the government is doing a favour only to selective people instead of providing basic and common facilities to all. Definitely, these kind of steps should be taken but only in cases when other people are also satisfied. Hence, this decision doesn’t seems to be fascinating for all.

Navjeet Kaur

Manage finances prudently

In a country where poll promises are meant to be forgotten the minute you win, an elected government walking an extra mile to fulfill one of its promises, is a welcome break. That the fiscal health of the state is in dire straits is no secret, but to use it as an excuse to deny the employees their due rights, is sinful. We are living in a country where public health facilities are almost non-existent, where the cost of civic services is hitting the roof and inflation remains untamed. In such a scenario, a favourable pension scheme remains the only reliable source of confirmed income for the employees in their twilight years, for as long as they are alive. The wrongs done by previous governments need to be undone. The present government needs to cut on unproductive expenditure such as heavy advertisements to prudently manage the finances. Also, better collection of revenue through stricter compliance should be the goal to augment the finances for provisioning of this expense which will make its impact in 2030. I hope the government has readied its plans for this.

Avtar Singh

State already under debt of Rs 2.75L crore

The Punjab Government decided to restore the old pension scheme for its employees. Chief Minister Bhagwant Mann announced that the government had decided to implement the old pension scheme as a Diwali gift for its employees. The decision was taken as an in-principle decision to the effect of the cabinet meeting. The decision aims to benefit lakhs of employees. But the concern is from where that money will come from. Punjab is already under dept of almost Rs 2.75 lakh crore. They are just trying to woo people in the wake of Himachal and Gujrat elections round the corner, and want to win the election by hook or crook and that’s why they are making announcements to woo people in these states.

Rohit Kumar Sehdev

Punjab’s economy already in doldrums

The state government’s decision to restore the old pension scheme for its employees is a bad decision in the context of state’s poor financial condition. Already, the state’s economy is in doldrums, and the government is bent upon ruining it further by offering untimely and unwanted sops to its employees. Before announcing such huge expenditure, the government officials, should have used common sense of its adverse implications on Punjab’s economy. Last, but not the least, the Punjab Government should reverse back its decision to restore the old pension scheme as soon as possible to as the welfare of the state should be more important to it than the welfare of its employees.

Sanjay Chawla

Had been a major demand of employees

It appears the Punjab Government’s decision to restore the old pension scheme has been announced keeping in mind the Assembly election-bound states of Himachal Pradesh and Gujarat. The old pension scheme was replaced with the National Pension Scheme (NPS) about two decades ago. The restoration of old pension scheme will be an extra burden on the cash-starved Punjab’s financial health. But before the implementation of the old pension scheme, the issue of funds under the new pension scheme needs to be sorted out by the government with the Centre. However, the burden of the pension scheme will not have to be borne by the present government, as it is for the employees who are recruited after 2004. But the impact on the state exchequer will be quite visible after about 2030. Restoration of the old pension scheme which was discontinued in 2004 has been a major demand of the Punjab Government employees, ahead of Assembly elections and the AAP had promised to do away with the NPS. So, what the government is doing is fulfilling the promises made before the 2022 elections. The restoration of the old pension scheme is bound to benefit government employees as now they will get pension on superannuation as per the old pattern. We will have to wait and watch how the government solves the extra financial burden issue. Satisfaction of the Punjab Government employees is also an important factor for an efficient administration in the state.

EL Singh

More Burden On Punjab govt’s Exchequer

The Punjab Government has declared to restore the old pension scheme and employees are happy over the decision. Around 1.75 lakh employees will benefit from the old pension scheme, and the government’s expenses would increase by more than Rs 11,000 crore annually. The state already has a debt of 2.63 lakh crore. Apart from this, the government’s decision to give free electricity has put a burden of 20,000 crore on the government exchequer. Why did the government of Punjab restore the old pension scheme? Everyone knows about the economic condition of the state’s treasury. In this situation, two things come into light. The Punjab government wants the favour of pension holders. Secondly, it wants to win the elections in Himachal Pradesh and Gujrat. Whatever may be the intention of the government to restore the scheme, it comes down to how the Punjab Government will manage the expenses of the old pension scheme and the power subsidy bill state.

Sucha Sagar

Decision seems to be good

The revival of the old pension scheme was a long pending demand of the state employees. This was also one of the electoral promises made by the Aam Aadmi Party. The decision seems to be a good one and it would not have much immediate effect on the state exchequer as the state would have to pay the state recruits who have joined after 2004. The effect will be visible only by 2030. The state exchequer at present faces a debt of 2.63 lakh crore. As the state government has to provide this benefit to nearly 1.75 lakh employees, it is a difficult trane to walk. But the government must be having some plan considering its number of pro-people decisions in sequence despite the state being debt bound. The government is relying on the financial experts so its decision would prove to be fruitful. But the point important to highlight here is, the state could have waited for this decision like the waiver of electricity bill. But the AAP government pushed this decision sooner as it eyes on the elections in the neighbouring states. It is important to have wise and timely decisions to avoid a state being in a situation of financial turmoil.

Kushkaran Singh

Fears of financial burden misplaced

Pension is a big welfare measure, which provides financial security to employees to lead life comfortably upon retirement. While the staff deployed at the field level and in administrative offices render a variety of public services drawing limited payoffs, it is the duty of the government to safeguard their interest. Fulfilling a major demand of its employees, the Punjab Government has decided to restore the Old Pension Scheme (OPS), which was discontinued in 2004. An estimated 1.74 lakh employees will draw benefit of the OPS, besides 6 per cent increase in dearness allowance of their monthly emoluments. Notwithstanding the bleak financial position of the state due to a whooping debt burden and overstrained resources, the restoration of OPS is a step in right direction. Apparently, satisfied government employees are expected to give better output and the measure is likely to boost their morale to serve with renewed zeal. Describing the move to restore OTS a burden on the state exchequer is misplaced since funds for payment of pension are generated during working tenure of a pensioner itself. Also, arguing the disparity in old and new pension formulations is ridiculous since an employee gets the liberty to choose the better option suited to him or her. In the overall context, efficiency and honesty in services to public without disruption or coercion matters. By a little reorientation in budgetary allocations, the state will not find any problem in mobilising the required resources for the purpose.

Nirmaljit Singh Chatrath

Govt staff, too, need financial security

Restoration of the old-pension scheme for all government employees is an appreciable step. If the politicians can be entitled to pension and perks, why can’t the employees, who spend a large period of their lives in public service. However, the timing of the announcement coincides with the Himachal Pradesh and Gujarat Assembly elections, and might be aimed at garnering votes for favourable results. The deficit of the state government will certainly increase, but there is no need to worry. When the Central and state governments can show financial skills in extending free ration scheme and other subsidised schemes, 300 units of free electricity per month to every consumer, they can certainly plan well for the restoration of the old pension scheme to lessen its impact on the state exchequer. The government jobs will once again become a major attraction and will help check the brain drain to abroad. The decision will also force the governments to stop the politics of freebies and use the state money for ensuring timely disbursal of pension.

Rajat Kumar Mohindru

Decision devoid of economic prudence

The Punjab Government’s decision to restore the old pension scheme is only going to put an enormous burden on already-stressed exchequer. Considering the mounting debt on the state, the decision seems devoid of economic prudence. The severity of its impact on the state finances can only be known when the contours of the renewed scheme are made public. As of now, one can only presume that the decision has been taken considering the ensuing elections in Gujarat and Himachal Pradesh.

Aman Madaan

Old pension provides financial security

While the number of senior citizens is increasing in the state every year, old age security has not got due attention from the successive governments. To decrease the burden on its exchequer, the state government put a ban on regular recruitments in different departments, scrapped the old pension scheme (OPS) and implemented the New Pension Scheme (NPS) in 2004. Unlike the OPS, 10 per cent of an employee’s salary and dearness allowance plus 14 per cent government’s share were to be contributed to create a corpus fund under the new scheme. In OPS, an employee was entitled to get a sum equivalent to half the last salary drawn. But millions of employees covered under the Employees Provident Fund (EPF) pension scheme whose last drawn salary was one lakh are getting merely Rs 1,500-3,500 per month that is lower than the destitute pension given as part of the government’s welfare programme. What a mockery! At a time when inflation is skyrocketing, there has been an urgent need to revert to the old pension scheme to provide adequate financial support for retired senior citizens. The government should check corruption and undesired freebies, and generate enough funds for the purpose. It will provide the elderly much-needed economic security to meet their expenses in the wake of soaring inflation.

Karman S Kang

Poor finances no reason to deny due

It’s good that the state government has restored the old-pension scheme for its employees. There is no doubt that the financial condition of the Punjab Government is precarious, but that doesn’t mean that the government employees should be denied the revised pension scheme. Many politicians, ministers and bureaucrats continue to put burden on the treasury through scams and corruption. Many leaders of the previous governments and even of this one have been in jail because of corruption charges. Under such circumstances, giving the government employees their due shouldn’t be taken negatively. The decision should have been made long ago.

Dr JS Wadhwa

Implications will be visible after 2030

The revival of the old pension scheme is a good move. It would not have much immediate effect on the state exchequer as the state would have to pay the state recruits, who joined after 2004, only by 2030. The state exchequer presently faces a debt of Rs 2.63 lakh crore. As the state government has to provide this benefit to nearly 1.75 lakh employees, it is a difficult track to walk. But the government must be having some plan considering its number of pro-people decisions in sequence despite the state being debt-bound. The government is relying on financial experts so its decision would prove to be fruitful. But the important point to highlight here is the state could have waited for this decision like the waiver of electricity bill. But the AAP government pushed this decision sooner, eyeing the elections in the neighbouring states. It is important to make wise and timely decisions when the state is in financial turmoil.

Khushkaran Singh

Withdraw decision, spend on industry

The decision to restart the old pension scheme will wreak havoc on the state exchequer. Already Punjab is a financially bankrupt state; it cannot afford such largesse. The state government needs to change its policies and focus more on taking measures for industrial development than wooing voters populist measures. The lack of proper infrastructure, high taxation rates and land prices, costly electricity, etc., is harming the industry.

Harvinder Singh Chugh