Assam cabinet amends old pension rules for improved financial security

Assam cabinet has approved changes to pension regulations aimed at improving financial security for government employees. Under the newly ratified amendment to Rule 10(1)(b) of the General Provident Fund (Assam Services) Rule 1937, state employees covered by the Old Pension Scheme will see adjustments to their contribution limits.

The revised rule allows employees to contribute between 6.25% and 100% of their monthly emoluments to their provident fund. Further, the total contributions, including arrears, during a financial year are now capped at Rs 5 lakhs.

This modification is expected to provide greater flexibility for employees to manage their retirement savings. The government stated that the change would help alleviate financial hardships faced by retirees and current employees by allowing increased contributions and the ability to withdraw funds for emergencies.

The decision comes as part of a series of measures announced by the Assam cabinet on July 31, which also included initiatives for development in Sixth Schedule areas of the state. These areas are set to receive 474 new administrative positions to bolster local governance and implementation of development schemes.