Panjab University Offers Another Chance to Opt for Old Pension Scheme
Panjab University (PU) is set to offer its employees who joined before 2006 another opportunity to opt for the Old Pension Scheme (OPS) when the Board of Finance (BoF) meets on June 12. This move, aligning with Punjab’s policy, will incur a net liability of ₹492 crore for the university.
Originally, all PU employees who joined before 2004 were allowed to continue with OPS when the New Pension Scheme (NPS) was introduced. Punjab had extended this option to employees under 35 years of age until 2006. Now, PU proposes to adopt this policy, impacting 202 eligible employees who joined between 2004 and 2006, with 7 already retired, and adding ₹108 crore to the liability.
The OPS guarantees retirees a monthly pension, unlike NPS, which requires salary deductions to fund the pension. Some eligible employees who initially did not opt for OPS are now expressing interest in the scheme.
The university syndicate, following legal consultations, empowered the vice-chancellor to form a committee to assess the financial implications of this decision. The committee found that of the 711 employees who joined before 2004, 420 are retired and 291 are still in service, resulting in a liability of ₹384 crore.
The syndicate confirmed there are no legal barriers to offering this option again and that no additional authority’s approval is necessary. A private consultancy firm was engaged to evaluate the financial impact after the syndicate’s September 2022 resolution.
Although PU’s finance and development officer was unavailable for comment, an anonymous official indicated that the university will discuss funding strategies for this proposal if approved.
