To ensure timely payment of pensionary and retirement benefits to the employees of the Municipal Corporations, Municipal Councils and Improvement Trusts across Punjab, the State Government has created a pension fund.
The fund, created by amending the Punjab Municipal Corporation Employees Pension and General Provident Fund Rules,1994, and the Punjab Improvement Trust Employees Pension and General Provident Rules,1994, would comprise seven per cent of the total annual income of the municipal corporations and municipal committees.
Besides, three per cent of the annual income from the Improvement Trusts would also contribute towards the Fund. With the setting up of separate pension Fund, all the employees would now get their pension and retirement benefits regularly, said a spokesperson of the Chief Minister’s Office.
The spokesperson said: “Punjab Chief Minister Parkash Singh Badal has already cleared the proposal mooted by the local Government Minister Chunni lal Bhagat for the creation of the new pension fund for the employees of local Government.”
The Pension Fund was formed primarily to bring an end to undue litigation and ensure timely payment of the dues related to pensions.
Several municipal committees were facing financial crunch due to limited resources over past many years and hence unable to pay pension and other retiral benefits to its employees.
local Government Secretary Ashok Gupta said, “Now, with the new pension fund in place all the employees were getting pension and other retirement benefits regularly without any delay.” Earlier, there were as many as nearly 300 civil writ petitions in this regard. Resultantly, the litigation has virtually has come to an end, since 95 per cent of civil writ petitions have been disposed of, added Gupta.