NPS To OPS: Major Change in NPS
Govt Contribution Raised to 14%
New Pension Scheme to Old Pension Scheme: As per the media news, the Union Cabinet approved on Thrusday (6.12.2018) to raise the contribution to National Pension Scheme (NPS) to 14 per cent.
Major Changes has been inititated by the Central Government in the exisiting National Pension Scheme applicable for the employees joined on or after 1.1.2004 in Central Govenment Services. The maximum contribution is now 10% of basic pay. The Government contribution may be raised to 14% of basic pay.
National Pension System (NPS) is a defined contribution pension system in place of existing defined benefit system, applicable for fresh entrants to Central Government Service from 1-1-2004 except the Armed Forces. The monthly contribution to be deducted amounts to 10% of the Basic Pay and DA to be paid by the employee and matched by the Central Government. The maximum limit of monthly contribution is 10%.
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The Cabinet Committee also approved to increase the commutation percentage from 40% to 60%.
At present, there is only one default scheme for Tier I for Government employees. In the default scheme, the contribution is allocated to three PFMs, viz. SBI Pension Funds Private Limited, UTI Retirement Solutions Limited and LIC Pension Fund Limited in a predefined proportion.
With effect from 10.06.2015, each of the PFMs will invest the funds in the proportion of upto 50% in Government Securities and Related Investments, upto 45% in Debt Instruments and Related Investments, Upto 5% in Short-term Debt Instruments and Related Investments, upto 15% in Equities and Related Investments and upto 5% in Asset Backed, Trust Structured and Miscellaneous Investments.
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Also Check: Central Government Pay Matrix Table 2022 PDF
Great Initiative by Government !
कर्मचारी मासिक भुगतान उनके मासिक भुगतान से कुछ भी नहीं है कि यह एक मासिक रूप से तय जमा है जो सामान्य रूप से सरकारी बैंक दरों पर ब्याज की कमाई के समय के साथ लगातार संवैधानिक जमा के कुछ वर्षों की अपनी कुछ राइट्स पर एक अधिकार देता है।
NPS , COMMUTATION from 40 to 60%, another proposed hike from 10 to 14%, what for and who is going to be beneficial?
CERTAINLY,THE GOVERNMENT AND THE HEAD OF DEPARTMENT AND NOT THE EMPLOYEE.
One of my Inspector, RPF, DECIDED NOT TO OPT FOR COMMUTATION OF 40% of his pension and he is now comfortable with 100% BASIC PENSION WITH DAY TO DAY INCREASING DA%from time to time.
2) Employee`s CONTRIBUTION FROM THEIR MONTHLY PAYMENTS IS NOTHING ELSE THAT IT SELF IS A MONTHLY FIXED DEPOSIT WHICH ULTIMATELY GIVES A RIGHT ON THEIR WHOLE SOME AMOUNT OF SOME YEARS OF CONTINUOUS CUMULATIVE DEPOSIT WITH TIME TO TIME EARNINGS OF INTEREST ON GOVERNMENT BANK RATES.
3) NOW, WITH THE ABOVE FACTORS AS KNOWN TO PUBLIC KNOWLEDGE, THERE MAY BE CONFIDENTIAL INFORMATION BELONGING TO MATHEMATICS FORMULA ABOUT COST ACCOUNTS.
4) MY FEELINGS THAT THE OLD SYSTEM OF PENSION WILL BE MORE THAN HAPPY WITH EMPLOYEE PENSION, THEN FAMILY PENSION, THEN SECONDARY FAMILY PENSION.
5) THE MOST UNHIDDEN FAVOR THE GOVERNMENT HAS BEEN DOING TO THE PRESENT PENSIONERS IS THAT IS, IN CASE, THE PENSIONER EXPIRE, GOD FORBID, BEFORE COMPLETION OF COMMUTATION PERIOD OF 15 YEARS, THE DEDUCTION SHALL NOT BE DONE AND IN OTHER WORDS, THE FAMILY MEMBERS ARE THE BENEFICIARY.
Mariappan M says
raise the contribution to National Pension Scheme (NPS) to 14 per cent. &
the commutation percentage from 40% to 60%.
This is only the media news and not a govt. news Think it over