Archive · 15 Sep 2026
Punjab Plans Guaranteed Pension Scheme With Continued Employee Contributions
Punjab wants to create a new pension plan for its government employees.
The plan is called a guaranteed pension scheme.
It may look like the older pension system, but it will not be exactly the same.
Employees will still have to contribute 10% of their pension amount.
This means the plan will remain a contributory scheme.
Punjab’s Finance Department says it needs four more months to complete the details.
Officials will also study pension plans used by the central government and other states.
The announcement was made by the Aam Aadmi Party-led Punjab government, ahead of a likely 2027 state election.
Punjab says it will introduce a guaranteed pension scheme for state employees.
The proposed scheme is intended to resemble, but not replicate, the Old Pension Scheme.
Employees will continue contributing 10% under a defined contributory pension structure.
The Finance Department requested four additional months to finalise and implement the scheme.
The review will examine the central Unified Pension Scheme and schemes used by other states.
- Who
- The Punjab government and its employees; the ruling Aam Aadmi Party also announced the pension proposal.
- What
- Punjab plans to activate a guaranteed pension scheme while retaining a defined contributory structure and a 10% employee contribution.
- When
- The promise was announced on November 18, 2022; a Finance Department notification issued Sunday said four more months were needed, and the election is likely in February 2027.
- Where
- Punjab, India.
- Why
- The government is reviewing and finalising the scheme, including by studying the central Unified Pension Scheme and pension schemes in other states.
- Scheme
- A proposed guaranteed pension scheme for Punjab government employees
- Employee contribution
- Employees will continue contributing 10%
- Pension structure
- Defined contributory pension scheme
- Relationship to Old Pension Scheme
- The proposal resembles but is not the same as the Old Pension Scheme
- Implementation timeline
- The Finance Department requested four additional months to finalise and execute it
- Comparative review
- The review will study the central government's Unified Pension Scheme and schemes run by other state governments
- Original announcement
- The guaranteed pension promise was announced on November 18, 2022