None
Skip to mainWith some Opposition-controlled states announcing plans to reintroduce the old defined-benefit pension scheme (OPS) for their employees and abandon the reform-oriented contributory national pension system (NPS), the Union government may suggest annuitizing the entire government contribution to NPS as an alternative.
To improve their pension payouts, the government is considering enabling employees to invest more than 40% of the NPS corpus in systematic withdrawal plans and inflation-indexed products.
Under the NPS, a person can withdraw 60% of the accumulated corpus from contributions made during their working years when they retire. It is also tax-free to make such a withdrawal. The remaining 40% is invested in annuities, which might offer a pension equivalent to around 35% of the last salary drawn, according to estimates. Government employees used to receive 50% of their last wage as a pension under the OPS.
If 60% of the contribution is annuitized, which generally matches to the contribution by the federal and state governments, the NPS pension can be close to 45 per cent of the last drawn wage. The 5% deficit can be closed by the concerned government donating a bit more to the NPS. According to an authoritative source, this is considered a far better option than reintroducing the unsustainable OPS model. Employees will also be able to withdraw the corpus altogether from their personal contributions at the time of their departure.
Read more @ https://www.financialexpress.com
🕑 24 Mar, 2024 08:01 AM
Minutes of the DC/JCM (Railways) and Staff Side Meeting held on 15-16 Feb
🕑 20 Mar, 2024 09:23 AM
Pensioners Samaj on discrematory nature of railway Notional Increment order
🕑 20 Mar, 2024 09:14 AM
BSNL non-executive staff wage revision: Record of Joint Committee discussion
🕑 19 Mar, 2024 10:36 AM
50% for CDA pattern employees of CPSEs in 7th CPC pay
🕑 18 Mar, 2024 01:16 PM
Changes in Reimbursement of Children Education Allowance as per NEP 2020
🕑 18 Mar, 2024 01:13 PM
Holiday declare for 14th April, 2024 – Birthday of Dr. B.R. Ambedkar
🕑 18 Mar, 2024 01:04 PM
Revised Flexible Complementing Scheme for Scientists
🕑 15 Mar, 2024 09:33 AM
Dearness Relief to Central Government pensioners from January 2024
🕑 14 Mar, 2024 02:07 PM
Govt bans 18 vulgar 18 OTT. See the list here
🕑 08 Mar, 2024 01:49 PM
Pension Scheme Gains Traction Across States, Despite Central Hurdles
🕑 20 Feb, 2024 11:17 PM
CGHS rate for general surgery applicable from February 1, 2024
🕑 08 Feb, 2024 10:19 AM
No loan interst change as RBI maintains repo rate at 6.50% for the 6th time
🕑 07 Feb, 2024 08:28 PM
The Evolving Role of Pay Commissions in India: Mandatory or Myth?
🕑 05 Feb, 2024 03:50 PM
How much you take home increase after DA hike?
🕑 03 Feb, 2024 07:59 PM
Guaranteed Benefits in NPS: Election Gambit or Endgame for Retirees?
🕑 03 Feb, 2024 07:46 PM
Budget 2024. Benefit up to ₹ 25000. One in eight taxpayers to benefit