In a major relief for the families of state government employees, Punjab Finance Minister Harpal Singh Cheema announced that the Finance Department has removed a critical clause from the New Pension Scheme (NPS) guidelines that required employees to opt in for family or invalid pension benefits. The decision was made in response to the challenges faced by families of employees who died in service without formally selecting the option.
In an official statement, Finance Minister Harpal Cheema highlighted that the government had earlier extended family and invalid pension benefits to NPS employees who became disabled or died while in service, through Finance Department instructions issued on October 8, 2021. However, Clause 6 of these instructions mandated that employees—both serving and newly appointed—had to choose between NPS benefits or family/invalid pension within a set timeframe. This clause created serious hurdles for families unaware of the requirement or unable to complete the process in time.
To address this, the Finance Department removed Clause 6 on June 27, 2025. Initially applicable to Punjab Government NPS employees, this amendment has now been extended to include employees under Boards, Corporations, Public Sector Undertakings (PSUs), and State Autonomous Bodies (SABs). Cheema said the change ensures that all NPS-covered employees are now automatically eligible for additional relief without needing to submit any formal option.
He further noted that the original October 8, 2021 instructions were implemented for Boards, Corporations, PSUs, and SABs via a Directorate of Public Enterprises and Disinvestment (DPED) communication on January 23, 2024.
Finance Minister Harpal Cheema emphasized that the removal of this clause reflects the Aam Aadmi Party (AAP)-led Punjab Government’s ongoing commitment to the welfare of its employees, aiming to ensure timely and seamless financial support for them and their families in times of crisis.