FD WITHDRAWS KEY OPTION CLAUSE FOR NPS EMPLOYEES TO RECEIVE FAMILY OR INVALID PENSION: HARPAL SINGH CHEEMA
ALL NPS EMPLOYEES ARE NOW ELIGIBLE FOR ADDITIONAL RELIEF WITHOUT EXERCISING THE OPTION
DECISION TO REDUCE HARDSHIP FOR FAMILIES IN THE EVENT OF EMPLOYEE DEATH OR DISABILITY
Chandigarh, August 2
In a significant move to support the families of State Government employees, Punjab Finance Minister Advocate Harpal Singh Cheema announced today that the Finance Department (FD) has withdrawn a key option clause for New Pension Scheme (NPS) employees to receive family or invalid pension. He said that this decision comes after the government recognized the undue hardship caused to the families of employees who died in harness, as most had not formally exercised this option.
In a press communiqué issued here, Finance Minister Harpal Singh Cheema said that the government had previously extended additional relief in the form of a family or invalid pension to NPS employees who became disabled or died while in service through Finance Department instructions dated October 8, 2021. However, Clause 6 of these instructions required both existing and newly recruited employees to choose within a specific timeframe whether they wanted to receive the family or invalid pension or the benefits of the NPS scheme. He said that this condition had created significant difficulties for families who were unaware of the requirement or were unable to complete the process.
The Finance Minister said that the Finance Department officially deleted Clause 6 of the instructions on June 27, 2025 to rectify this issue. He said that this change, which was initially implemented for Punjab Government NPS employees, has now been extended to include NPS employees of Boards, Corporations, Public Sector Undertakings (PSUs), and State Autonomous Bodies (SABs). “This ensures that all employees under the NPS are now eligible for the additional relief without having to formally exercise the option”, he added.
Notably, the October 8, 2021, instructions were implemented for Boards, Corporations, PSUs, and SABs under the Punjab Government through a Directorate of Public Enterprises and Disinvestment (DPED) letter dated January 23, 2024.
The Finance Minister Harpal Singh Cheema said that the Punjab government aims to provide seamless benefits to employees and their families by removing this clause, ensuring that they receive the necessary financial support during difficult times. He said that this decision underscores the Aam Admi Party (AAP) led Punjab Government’s commitment to addressing the welfare of its employees and promoting a supportive work environment.
