December 12, 2024 14:05 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
India's D Gukesh becomes youngest ever world champion in chess | Devendra Fadnavis meets PM Modi amid suspense over Maharashtra portfolio allocation | Congress wants to deviate the issue of Sonia Gandhi-George Soros link: JP Nadda | Bengaluru techie suicide: Atul Subhash's family demanded Rs. 10 lakh as dowry leading to my father's death, claims estranged wife | Syria rebels torch tomb of ousted president Bashar al-Assad's father | Donald Trump vows to eliminate birthright citizenship after taking charge | No alliance with Congress in Delhi polls: AAP chief Arvind Kejriwal | Bengaluru techie's suicide: Atul Subhash's wife and her family booked | Bengaluru techie's suicide: Atul Subhash's wife and her family booked | INDIA bloc to knock on Supreme Court's doors over alleged EVM manipulation during Maharashtra polls
Photo Courtesy: Pixabay

Central govt employees may get 50% of their last drawn salary as pension under NPS: Report

| @indiablooms | Jul 11, 2024, at 06:09 am

New Delhi: As the Finance Ministry prepares to present the full fiscal year budget for 2024-25, the National Democratic Alliance (NDA) government is considering offering central government employees a pension equivalent to 50% of their last drawn salary under the National Pension System (NPS), according to a report by the Times of India.

This move by the NDA government aims to address the concerns of central government employees regarding their pensions.

A panel led by Finance Secretary TV Somanathan has evaluated the impact of providing an assured return.

The committee, formed following an announcement by Finance Minister Nirmala Sitharaman, has also reviewed global practices and the adjustments implemented by the Andhra Pradesh government, the report says.

“There is growing acknowledgement within the government of offering a 50 per cent guarantee," and in case of any shortfall, the government will cover the gap, the report added.

The Somanathan panel’s recommendations come amid rising concerns over the pension system for central government employees.

The government pension system currently operates without funding, as the Centre does not maintain a retirement fund.

The Budget 2024 is anticipated to include provisions for the creation of a retirement fund by the NDA government.

The National Pension System is a voluntary, long-term retirement savings scheme designed to provide financial security to individuals during their post-retirement period.

Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), the NPS operates on a defined contribution basis.

Subscribers contribute regularly to their retirement account during their working years, which is then invested in various financial instruments such as equity, corporate bonds, government securities, and alternative assets.

The accumulated corpus is managed by Pension Fund Managers (PFMs) appointed by the PFRDA.

The NPS offers tax benefits under Section 80C of the Income Tax Act and provides an additional deduction under Section 80CCD(1B).

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.