Tuesday, July 23, 2024
HomePersonal FinanceNPS: Good news for central government employees, 50% pension guarantee proposed under...

NPS: Good news for central government employees, 50% pension guarantee proposed under NPS

Modi 3.0 government has given a very good news to the central employees. The government has proposed 50 percent pension guarantee under the National Pension Scheme.

New Delhi: After the formation of Modi 3.0 government at the Center, there is great news for the central employees. In fact, the Narendra Modi-led Bharatiya Janata Party government has proposed an increase in pension to central employees under the National Pension Scheme (NPS). According to the information revealed, the central government has proposed a guarantee of 50 percent pension on the last basic salary of central employees.

The committee was formed under the chairmanship of TV Somanathan

Last year in March 2024, the central government led by Prime Minister Narendra Modi constituted a committee under the leadership of Finance Secretary TV Somanathan, whose aim was to find ways to improve pension benefits under the National Pension Scheme i.e. NPS without returning to the Non-Contributory Old Pension Scheme (OPS). This committee was formed when many states of the country refused to implement the National Pension Scheme and started the process of old pension system OPS.

These people were included in the committee

Let us tell you that no fixed time limit was set for submitting the report to this committee. This committee included Special Secretary Radha Chauhan in the Expenditure Department of the Finance Ministry, Annie Mathew and Chairperson of Pension Fund Regulatory and Development Authority Deepak Mohanty.

50 percent pension guarantee

It is worth noting that under the National Pension Scheme, there will be a guarantee of pension equal to 40 to 50 percent of the last salary of central employees. In simple language, if you retire on the last salary of Rs 50,000 per month, then you will be given 20 to 25 thousand rupees per month as pension. However, the total service time and any kind of withdrawal by you from the pension fund will be adjusted. To meet this pension guarantee, any shortfall in the pension fund will be met from the budget of the central government.

More than 87 lakh employees will benefit

It is worth noting that if the National Pension System is implemented, then more than 87 lakh central employees registered in the National Pension Scheme from January 1, 2004 will get its benefit. According to a statement from the Finance Ministry, this amount keeps increasing with the increase in DA rates. The ministry had said that OPS is not financially sustainable as it is not contributory and the burden on the government treasury keeps increasing.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments