Punjab Finance Department Withdraws Option Clause for NPS Employees’ Family and Invalid Pension: Harpal Cheema
Chandigarh, August 2
All NPS Employees Now Eligible for Additional Relief Without Option Requirement
Decision Aims to Ease Hardship for Families in Cases of Employee Death or Disability
In a major step to support the families of Punjab Government employees, Finance Minister Advocate Harpal Singh Cheema announced today that the Finance Department (FD) has eliminated a key option clause for New Pension Scheme (NPS) employees to access family or invalid pensions. This decision addresses the hardships faced by families of employees who died in service or became disabled, many of whom were unable to benefit due to the requirement to formally opt for the pension.
Key Announcement
In a press communiqué, Minister Cheema explained that the Punjab Government had previously introduced additional relief through family or invalid pensions for NPS employees who died or became disabled during service, as outlined in Finance Department instructions dated October 8, 2021. However, Clause 6 of these instructions mandated that both existing and new employees choose within a specified timeframe between the family/invalid pension or NPS benefits. This requirement created significant challenges for families unaware of the clause or unable to complete the process.
To rectify this, the Finance Department officially removed Clause 6 on June 27, 2025. Initially applied to Punjab Government NPS employees, this change has now been extended to NPS employees of Boards, Corporations, Public Sector Undertakings (PSUs), and State Autonomous Bodies (SABs). “This ensures that all NPS employees are now automatically eligible for the additional relief without needing to formally exercise the option,” Cheema stated.
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Background
The October 8, 2021, instructions were extended to Boards, Corporations, PSUs, and SABs under the Punjab Government via a Directorate of Public Enterprises and Disinvestment (DPED) letter dated January 23, 2024.
Commitment to Employee Welfare
Minister Cheema emphasized that the removal of the clause reflects the Aam Aadmi Party (AAP)-led Punjab Government’s commitment to providing seamless financial support to employees and their families during challenging times. “This decision underscores our dedication to employee welfare and fostering a supportive work environment,” he added.
