Withdraw pension more than 50% of last drawn salary with this new govt rule
6 years, 3 months ago

Withdraw pension more than 50% of last drawn salary with this new govt rule

Live Mint  

Good news for central government employees! The cabinet has raised the government’s matching contribution to the National Pension Scheme to 14 per cent of the basic salary as against 10 per cent earlier, according to official sources. In a major development, central government employees are allowed to withdraw up to 60 per cent of their NPS corpus at the time of retirement. While the Cabinet hiked the government’s contribution to the NPS scheme, the minimum employee contribution remains unchanged at 10 per cent. If the government employee transfers the entire accumulated fund in the NPS scheme to an annuity, his/her pension will be more than 50 per cent of the last drawn salary, according to sources.

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History of this topic

Why NPS can be your only retirement plan
1 month, 2 weeks ago

Why NPS can be your only retirement plan

New Indian Express  

The benefits of the National Pension Scheme significantly far outweigh the effort needed to learn and understand about investing. For years, you have put aside money for your retirement through employee provident funds, public provident funds, other government guarantee schemes or fixed deposits. Pension schemes across many countries in Europe are based on government guarantees. In India, 32.7 crore people …

Centre finally notifies Unified Pension scheme option for government staff covered by NPS
2 months ago

Centre finally notifies Unified Pension scheme option for government staff covered by NPS

The Hindu  

Five months after the Centre announced a new Unified Pension Scheme with assured benefits for government employees, the Finance Ministry late on Friday notified the scheme as an option for workers covered by the National Pension System to be effective from April 1, 2025. The NPS, originally known as the New Pension Scheme, did not offer an assured pension to …

National Pension Scheme: Busting The Common Myths About NPS
2 months ago

National Pension Scheme: Busting The Common Myths About NPS

ABP News  

By Kurian Jose The National Pension System offers great tax-saving opportunities, but there are myths that often confuse potential investors. Myth 1: NPS Tax Benefits Are Just Like Other Investments Reality: NPS offers unique tax benefits beyond the traditional Section 80C: Section 80 CCD : Up to Rs 1.5 lakh. Myth 6: You Cannot Invest in NPS If You’ve Exhausted …

The National Pension System was tweaked for flexibility but awaits tax clarity
2 months, 3 weeks ago

The National Pension System was tweaked for flexibility but awaits tax clarity

Live Mint  

The latest tweaks to India’s National Pension System improve an already excellent retirement saving scheme. The NPS has one of the world’s lowest charges for fund management—about 0.06% of the assets managed, a sharp contrast with the 2% that mutual funds typically charge. Populist pressure made the government extend to NPS the same tax treatment that had been bestowed on …

New NPS contribution rules and guidelines for central govt employees announced: Check details
5 months, 2 weeks ago

New NPS contribution rules and guidelines for central govt employees announced: Check details

Hindustan Times  

The government has notified new NPS rules with updated contribution guidelines for leave and suspension which may increase retirement savings and pensions for central government employees, according to a Financial Express report. The Department of Pension and Pensioners’ Welfare has thus, notified the Central Civil Services Rules, 2021, in an October 07, 2024 memorandum, of new guidelines detailing the government’s …

Reforms to strengthen Unified Pension Scheme
6 months, 3 weeks ago

Reforms to strengthen Unified Pension Scheme

New Indian Express  

On August 24, the Union cabinet approved the Unified Pension Scheme, a significant step towards providing government employees a secure and assured pension after retirement. Over the last few years, the opposition has highlighted the dissatisfaction of government employees with the National Pension Scheme, commonly known as the New Pension Scheme. First, assured pension of 50 percent of the employee's …

Why did the Centre alter its pension plan?
6 months, 4 weeks ago

Why did the Centre alter its pension plan?

The Hindu  

The story so far: Last weekend, the Union Cabinet signed off on a major shift in the approach for providing old age income security to Central government employees, setting the stage for a new Unified Pension Scheme to be launched on April 1, 2025. There are five major components of the UPS benefits, starting with the assurance that government employees …

Unified Pension Scheme: How does it differ from the Old and New Pension Scheme?
7 months ago

Unified Pension Scheme: How does it differ from the Old and New Pension Scheme?

The Hindu  

The story so far: Fulfilling a long-standing demand of government unions, the Centre on Saturday, unveiled a new ‘Unified Pension Scheme’ assuring government employees half their last drawn salary as a lifelong monthly benefit. The move is also a surprising rollback by the NDA government as it was the original NDA – the Atal Bihari Vajpayee government – which had …

State government replaces NPS with sweeter revised pension scheme
7 months ago

State government replaces NPS with sweeter revised pension scheme

Hindustan Times  

MUMBAI: Within 24 hours of the union government’s approval of the Unified Pension Scheme to replace the New Pension Scheme for its employees, the Mahayuti government approved the UPS for around 8.3 lakh employees in a cabinet meeting on Sunday. HT Image Around 1.4 million government and semi-government employees, including Class 1 officers, Class 4 employees and teachers, had threatened …

New pension scheme to benefit central govt staff
7 months ago

New pension scheme to benefit central govt staff

Hindustan Times  

The Union cabinet led by Prime Minister Narendra Modi on Saturday approved a new pension policy for nearly 2.3 million central government employees, unveiling a framework that will give assured 50% of basic pay as monthly payout, assuaging federal staff unions that had sought guaranteed retirement benefits. Modi had set up a panel led by cabinet secretary-designate TV Somanathan, the …

No proposal to increase time limit for employees to switch from NPS to old pension scheme: Centre
7 months, 3 weeks ago

No proposal to increase time limit for employees to switch from NPS to old pension scheme: Centre

New Indian Express  

NEW DELHI: There is no proposal to increase the time limit for central government employees to switch from the National Pension System to the old pension scheme, the government said on Wednesday. NPS is mandatory for all new recruits in the central government service from January 1, 2004, Union Minister of State for Personnel Jitendra Singh said in a written …

Old vs new pension scheme: Will Budget 2024 offer 50% of last drawn salary as annuity?
8 months, 1 week ago

Old vs new pension scheme: Will Budget 2024 offer 50% of last drawn salary as annuity?

Firstpost  

Amid calls to restore old pension scheme, government is considering a proposal to increase pension benefits under National Pension System. Reports suggest Finance Minister Nirmala Sitharaman may announce a 50% pension guarantee of employees’ last drawn salary in Budget 2024. File Photo Amid calls, including from Opposition parties, for restoration of old pension scheme, Narendra Modi government is likely to …

Government employees may soon get 50% of last pay as pension under NPS: Report
8 months, 2 weeks ago

Government employees may soon get 50% of last pay as pension under NPS: Report

Hindustan Times  

Central government employees who are covered under the National Pension System may soon receive 50 per cent of their last drawn pay as pension as the government seeks to address concerns over payout disparities, The Times of India reported. The government has ruled out a return to the Old Pension Scheme which guaranteed a defined benefit of half of the …

Budget 2024: Central govt employees may receive 50 per cent of last drawn salary as pension under NPS
8 months, 2 weeks ago

Budget 2024: Central govt employees may receive 50 per cent of last drawn salary as pension under NPS

India TV News  

As the Finance Ministry prepares to present the 2024–25 fiscal year budget, the National Democratic Alliance government is contemplating a significant reform for central government employees. According to a report by the Times of India, the government may offer 50% of the last drawn salary as a pension under the National Pension System. Addressing employee concerns This proposed move aims …

Budget 2024: Central government staff could get 50% final pay as pension
8 months, 2 weeks ago

Budget 2024: Central government staff could get 50% final pay as pension

India Today  

The upcoming Budget 2024 is just a few weeks away, and the government may offer 50% of the final pay drawn as a pension for central government employees enroled under the National Pension System. Read Full Budget 2024 Coverage While the government has dismissed the idea of returning to the Old Pension Scheme, it is considering ways to provide reassurance …

NPS partial withdrawal new rule effective from February: What's different?
1 year, 1 month ago

NPS partial withdrawal new rule effective from February: What's different?

Hindustan Times  

The Pension Fund Regulatory and Development Authority has introduced a new provision allowing National Pension System subscribers to make partial withdrawals for specific purposes, effective from February 1. What is the new eligibility, limit, frequency for NPS partial withdrawal? The partial withdrawal amount should not exceed 25 per cent of the subscriber's total contributions in their individual pension account, excluding …

NPS scheme may get a makeover in Interim Budget 2024
1 year, 2 months ago

NPS scheme may get a makeover in Interim Budget 2024

India Today  

India is expected to consider extending tax concessions on contributions and withdrawals in the upcoming Interim Budget 2024, in an effort to make the National Pension Scheme more attractive, as per a Deloitte report The government might specifically focus on individuals aged 75 and above. Corporations enjoy tax exemptions for contributions up to 10 per cent of the basic salary …

Govt may amend pension scheme
1 year, 5 months ago

Govt may amend pension scheme

Live Mint  

New Delhi: The Union government is likely to amend the national pension scheme by the year-end to ensure employees get at least 40-45% of their last-drawn salary as retirement payout based on recommendations of a high-level panel currently looking into the matter, two people familiar with the developments said. The altered pension scheme will continue to be linked to market …

Mix Of OPS & NPS! How Guaranteed Pension Scheme Will Work In Andhra Pradesh?
1 year, 5 months ago

Mix Of OPS & NPS! How Guaranteed Pension Scheme Will Work In Andhra Pradesh?

News 18  

The Andhra Pradesh government is planning to implement a Guaranteed Pension System for its employees, which is a hybrid model of the Old Pension Scheme and the New Pension Scheme. Under the GPS, all state government employees will be eligible for a guaranteed monthly pension of 50% of their last drawn basic salary and dearness allowance. Old Pension Scheme The …

Over ₹10 lakh crore under its watch, NPS to ease withdrawal options
1 year, 6 months ago

Over ₹10 lakh crore under its watch, NPS to ease withdrawal options

The Hindu  

State governments that have ostensibly opted out of the National Pension System for their employees and have reverted to the Old Pension Scheme that guaranteed 50% of final salary as monthly pension, continue to remit due contributions to the NPS corpus. State government employees account for the largest chunk of the savings pool which crossed ₹10 lakh crore on August …

Govt Likely To Change NPS Rules For 40%-45% Assured Pension: Report
1 year, 9 months ago

Govt Likely To Change NPS Rules For 40%-45% Assured Pension: Report

ABP News  

The central government is considering revising the current market-linked National Pension Scheme to provide its employees with a minimum pension of 40 per cent to 45 per cent of their last drawn salary, reported news agency Reuters citing two government officials. Under the current National Pension Scheme, employees are required to contribute 10 per cent of their basic salary, while …

Rethink on NPS for govt. employees: Committee formed under Finance Secretary, no deadline set
1 year, 11 months ago

Rethink on NPS for govt. employees: Committee formed under Finance Secretary, no deadline set

The Hindu  

The Finance Ministry on Thursday notified the formation of a committee to review the pension system for government employees as announced by Finance Minister Nirmala Sitharaman in Parliament, while moving amendments to the Finance Bill of 2023. The order does not specify a deadline for the panel, which Ms. Sitharaman had said was being formed as “representations have been received …

National Pension System: From Tax Benefits, Schemes To Withdrawal. Know Everything About The Pension Scheme
2 years ago

National Pension System: From Tax Benefits, Schemes To Withdrawal. Know Everything About The Pension Scheme

ABP News  

If you are considering an avenue to invest for retirement planning, then you can consider National Pension System as it offers a range of investment options and a choice of pension fund schemes. NPS Tier-1 account Tier I – Pension account Minimum Contribution during A/C opening is Rs.500 for Tier I NPS Tier-2 account Tier II – Investment account The …

Explained: National Pension Scheme (NPS) vs Old Pension Scheme (OPS)
2 years ago

Explained: National Pension Scheme (NPS) vs Old Pension Scheme (OPS)

Hindustan Times  

With every passing day, demand for the restoration of the Old Pension Scheme is growing louder. Centre rolls out a one-time option for select employees to opt for OPS The central government recently decided to offer a one-time option for the "Old Pension Scheme" to a select group of central government employees. from the government servants appointed on or after …

’Find less costly ways...’: Raghuram Rajan speaks on Old Pension Scheme
2 years ago

’Find less costly ways...’: Raghuram Rajan speaks on Old Pension Scheme

Live Mint  

Former RBI Governor Raghuram Rajan has expressed his concern regarding the Old Pension Scheme. He said that restarting the old pension scheme would be an enormous obligation in the long run, adding, "less costly ways should be found to address the demands of government pensioners". The former RBI governor said the old pension scheme does involve massive future outlays because …

Why you should consider National Pension System (NPS) over other annuity scheme?
2 years ago

Why you should consider National Pension System (NPS) over other annuity scheme?

Live Mint  

NPS scheme: The National Pension System helps in creating a stable income source for every individual post-retirement. According to tax and investment experts, NPS provided an affordable investment model among other annuity plans available in the market along with income tax benefits. On why one should choose NPS over other annuity schemes available in market, Sreekanth Nadella, MD and CEO …

Select Central government employees can opt for Old Pension Scheme
2 years ago

Select Central government employees can opt for Old Pension Scheme

The Hindu  

In a significant decision, the government has decided to give a one-time option to select Central government employees to migrate to the Old Pension Scheme, who applied for jobs advertised before December 22, 2003, the day the National Pension System was notified but joined the service in 2004, when the NPS came into effect. The option is available to the …

Reverting to Old Pension Scheme will privilege government servants at cost of larger public: Former RBI governor D. Subbarao
2 years ago

Reverting to Old Pension Scheme will privilege government servants at cost of larger public: Former RBI governor D. Subbarao

The Hindu  

The decision of some States to restart Old Pension Scheme will be decidedly a regressive move and will provide more privilege to government servants at the cost of larger public, majority of which has no social safety net, former RBI governor D. Subbarao has said. According to Mr. Subbarao, if State governments revert to a 'pay as you go' pension …

Is there a middle way between the Old Pension Scheme and the New Pension Scheme? | In Focus podcast
2 years, 1 month ago

Is there a middle way between the Old Pension Scheme and the New Pension Scheme? | In Focus podcast

The Hindu  

Five states – Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh – have informed the Centre that they would be reverting to the Old Pension Scheme. Some analysts even believe that one of the reasons for the Congress victory in Himachal was its campaign promise to revert to the Old Pension Scheme. But government employees in different states have staged protests …

Only 76 of over 1.10 lakh govt employees opt for new pension scheme in Jharkhand
2 years, 3 months ago

Only 76 of over 1.10 lakh govt employees opt for new pension scheme in Jharkhand

Hindustan Times  

Of the 114,321 government employees in Jharkhand who were given the option to choose between the new and old pension schemes, only 76 opted to continue with the NPS as of December 28, people aware of the development said on Thursday. Going by the law of averages, all long-term investments in the market gives you a return of around 11-12 …

ECONOMIC PERSPECTIVES | Debate over old pension scheme divides State governments and Centre
2 years, 3 months ago

ECONOMIC PERSPECTIVES | Debate over old pension scheme divides State governments and Centre

The Hindu  

Published : Dec 29, 2022 10:15 IST In moves that are gathering momentum, a number of State governments are announcing or implementing decisions to reverse their shift to the new pension scheme designed largely by the Centre. Under the OPS, those who were members of the scheme, which consisted mainly of regular employees of the Central and State governments, made …

How Old Pension Scheme Is Different From NPS As Himachal CM Reiterates Promise
2 years, 3 months ago

How Old Pension Scheme Is Different From NPS As Himachal CM Reiterates Promise

News 18  

Himachal Pradesh new Chief Minister Sukhwinder Singh Sukhu on Sunday said the state government will implement old pension scheme in the first Cabinet meeting. Here’s the difference between the two: Old Pension Scheme Vs New Pension Scheme The government’s old pension scheme, referred to as the Defined Benefit Pension System, is based on the last pay drawn by the employee. …

Old pension scheme will burden future taxpayers: NITI Aayog Vice-Chairman
2 years, 4 months ago

Old pension scheme will burden future taxpayers: NITI Aayog Vice-Chairman

The Hindu  

NITI Aayog Vice-Chairman Suman Bery on Sunday expressed concern over the revival of Old Pension Scheme by some states, saying it would burden future taxpayers at a time when India needs to focus on fiscal prudence and promoting sustained growth. In an interview to PTI, Mr. Bery also underlined the need for enhancing capital expenditure and creating a space for …

Punjab government approve the implementation of Old Pension Scheme
2 years, 4 months ago

Punjab government approve the implementation of Old Pension Scheme

Live Mint  

At a time when the Old Pension Scheme is turning into a political issue with political parties promising restoration of scheme during elections, the Bhagwant Mann-led Punjab government approved the notification for implementation of the OPS in the state. An official of the government claimed that the decision will benefit 1.75 lakh government employees and currently, about 1.26 lakh employees …

Will Old Pension Scheme dent BJP's chances in Himachal?
2 years, 4 months ago

Will Old Pension Scheme dent BJP's chances in Himachal?

India Today  

In Himachal Pradesh, the opposition Congress and Aam Aadmi Party have been wooing government employees with the promise of bringing back the old pension scheme. Himachal Pradesh Congress President Pratibha Singh announced that her party will implement OPS on the first day of the formation of the government in the state. Prominent BJP leader and two-time chief minister of Himachal …

Bring back old pension scheme, Central government employees write to Cabinet Secretary
2 years, 4 months ago

Bring back old pension scheme, Central government employees write to Cabinet Secretary

The Hindu  

A federation of Central government employees’ unions has written to the Cabinet Secretary to restore the Old Pension Scheme, stating that the National Pension System is a disaster for retiring employees in their old age. The letter signed by the Joint Consultative Machinery, an apex body of various government unions comprising Group B and Group C officials, said: “It is …

New pension scheme vs old pension scheme. Which is better?
2 years, 6 months ago

New pension scheme vs old pension scheme. Which is better?

Live Mint  

Several states are reversing back to the old pension scheme. States like Rajasthan, Chhattisgarh and Jharkhand have already implemented the old pension scheme. Amit Gupta, MD, SAG Infotech explained all that about the two pension schemes Old pension scheme In the OPS, upon retirement, employees receive 50 percent of their last drawn basic pay plus dearness allowance or their average …

NPS Rule Change: IRDAI Eases Annuities Purchasing Rules For Retirees, Allows Digital Life Certificate
2 years, 6 months ago

NPS Rule Change: IRDAI Eases Annuities Purchasing Rules For Retirees, Allows Digital Life Certificate

ABP News  

From now on, the National Pension System pensioners don’t have to fill any separate proposal form for taking the Immediate Annuity products from the proceeds of the scheme. “In this direction, to bring ease of living for senior citizens, Irdai has relaxed the requirement of submitting separate proposal form for taking the immediate annuity products from proceeds of National Pension …

NPS for Corporate Employees: Know About Additional Avenue For Retirement Planning
2 years, 7 months ago

NPS for Corporate Employees: Know About Additional Avenue For Retirement Planning

News 18  

The National Pension System, a government- What is National Pension System? The NPS Corporate Sector Model is the customised version of core NPS to suit various organisations and their employees to adopt NPS as an organised entity within the purview of their employer-employee relationship. The Risk Rating System Recently, the Pension Fund Regulatory and Development Authority of India rules have …

NPS scheme: 5 reasons to opt this plan for better return with minimum risk
2 years, 7 months ago

NPS scheme: 5 reasons to opt this plan for better return with minimum risk

Live Mint  

NPS scheme: The National Pension System is a unique pension plan backed by the Government of India, which provides both equity and debt exposure in single investment. Speaking on the reason for NPS scheme gaining popularity among investors, Ajit Kumar, Chief Strategy Officer at KFintech said, "One of the reasons NPS is growing in popularity is its highly simple and …

NPS Calculator: Want to Get Rs 50,000 Pension After Your Retirement? Know How to Invest
2 years, 9 months ago

NPS Calculator: Want to Get Rs 50,000 Pension After Your Retirement? Know How to Invest

News 18  

NPS Calculator: Indian citizens who contribute to the country’s workforce look for several schemes, which will help them save money and provide returns without having much risk. The NPS is jointly offered by the Pension Fund Regulatory and Development Authority and the government of India, and acts as a stable savings against one’s retirement. NPS Eligibility A National Pension Scheme …

NPS To Soon Have Risk Rating System; Know How You Should Pick Best Pension Scheme
2 years, 9 months ago

NPS To Soon Have Risk Rating System; Know How You Should Pick Best Pension Scheme

News 18  

Schemes under the National Pension System will soon have ratings that will inform investors about the level of risk involved in a particular scheme that they are opting to invest in. The investment under various asset classes of the Schemes of Pension Funds would involve different level of risks for subscribers and, therefore, it is desired that the adequate disclosure …

NPS Calculator: How to Get Rs 1 Lakh Pension Per Month With Monthly Investment of Rs 5,000
2 years, 10 months ago

NPS Calculator: How to Get Rs 1 Lakh Pension Per Month With Monthly Investment of Rs 5,000

News 18  

The National Pension System, or NPS, is a retirement saving option where individuals can contribute a monthly amount to withdraw regular income after retirement. Under the NPS Tier 1, a person is allowed to withdraw 60 per cent of the accumulated corpus contributed during his/ her working years at the time of retirement, which is tax-free. Assuming the annuity rate …

The demand for restoring the old pension scheme
2 years, 11 months ago

The demand for restoring the old pension scheme

The Hindu  

The story so far: On February 23, Rajasthan Chief Minister Ashok Gehlot announced restoration of the old pension scheme for the government employees, who joined the service on or after January 1, 2004. The Finance Ministry had earlier ruled out proposals by a federation of Central and State governments employees saying that the “changes will be financially untenable.” What is …

NPS Update: Centre Mulling Over Raising Annuatised Pension Withdrawal Amount
3 years ago

NPS Update: Centre Mulling Over Raising Annuatised Pension Withdrawal Amount

News 18  

In the wake of some states mulling over re-introducing the old pension scheme for their staff, the central government is planning to make the reform-oriented National Pension System more attractive by increasing its annuatised amount for the employees, according to a report. Under the NPS, a person is allowed to withdraw 60 per cent of the accumulated corpus contributed during …

NPS scheme: Government employees must know these rules to avail big benefits
3 years ago

NPS scheme: Government employees must know these rules to avail big benefits

India Today  

The National Pension System is an essential savings scheme for central government employees. NPS ACCOUNT OPENING RULES An NPS account of central government employees is opened immediately on joining the service. INVESTMENT IN NPS ACCOUNT An employee can make contributions above the mandatory limit of 10 per cent in Tier I account of NPS. On exit from NPS on 60 …

Income Tax Rule Change: Tripple Tax Benefits on NPS; Know How it Works, Who Can Claim
3 years ago

Income Tax Rule Change: Tripple Tax Benefits on NPS; Know How it Works, Who Can Claim

News 18  

Finance minister Nirmala Sitharaman announced that state government employees will now be able to claim tax benefit of 14 per cent on the National Pension System made by their employer from financial year 2022-23. At present, only the central government employees are allowed to claim tax benefit of 14 per cent for the employer’s contribution to their NPS accounts. NPS …

Govt employees must take note of this big change in pension contribution
3 years, 1 month ago

Govt employees must take note of this big change in pension contribution

India Today  

To provide equal treatment for both central and government employees, Finance Minister Nirmala Sitharaman in her Union Budget 2022 speech announced that the central government proposed to increase tax deduction from 10 per cent to 14 per cent on contributions to the National Pension System by the state government for its employees. WHAT THIS MEANS FOR GOVT EMPLOYEES The Central …

Budget 2022: NPS exemption raised for state govt staff. An explainer
3 years, 1 month ago

Budget 2022: NPS exemption raised for state govt staff. An explainer

Live Mint  

Contributions made by subscribers to the government’s pension scheme NPS are exempt from income tax. In the Budget 2022, the finance minister Nirmala Sitharaman raised the tax exemption limit on employer’s contribution from 10 percent to 14 percent for state government employees. Exemption on contribution The subscribers of National Pension System can claim tax exemption under section 80CCD within the …

Budget 2022: Tax benefits to NPS for state govt employees hiked from 10% to 14%
3 years, 1 month ago

Budget 2022: Tax benefits to NPS for state govt employees hiked from 10% to 14%

Hindustan Times  

Tabling the Union budget in the Lok Sabha, Union finance minister Nirmala Sitharaman on Tuesday proposed an increase in the tax deduction limit from 10 per cent to 14 per cent on employers' contribution to the National Pension System account of the state and central government employees. Tax deduction limit raised from 10 per cent to 14 per cent on …

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