Withdraw pension more than 50% of last drawn salary with this new govt rule
These latest changes in the NPS scheme by the Narendra Modi government is expected to benefit over 3 million central government employees
Good news for central government employees! The cabinet has raised the government’s matching contribution to the National Pension Scheme (NPS) to 14 per cent of the basic salary as against 10 per cent earlier, according to official sources. Currently, both the government and employees contribute 10% of an employee’s salary to the NPS scheme. This latest move by the Narendra Modi government is expected to benefit over 3 million central government employees. The latest changes in the NPS scheme were recommended by a government-appointed committee. Other than this, the Cabinet announced A couple of decisions on Thursday.
Five things you need to know about the Cabinet meeting on Thursday
1. 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. At present, employees can withdraw up to 40 per cent of their NPS retirement fund. The mandatory annuity corpus will be 40 per cent of the retirement fund.
3. 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.
4. The date of notification is yet to be decided. According to a news agency, amendments to the NPS scheme will come into effect from April 1.
5. The government has also proposed to provide tax breaks for the employee contribution to NPS, according to sources.
Editor's Picks »
- Reverse Pitch| “Out of 5,000 ventures, only 2% get showcased to our members”
- Congress wins Chhattisgarh by a landslide, puts an end to Raman Singh era
- Opinion| A comprehensive rejection of BJP by Chhattisgarh
- Opinion: Why Urjit Patel will not be missed as RBI governor
- Even the Raman Singh factor could not prevent the BJP debacle in Chhattisgarh
- Steel stocks get winter chill as China demand issues resurface
- Why Uday Kotak’s defiance is scaring his bank’s investors
- Exit RBI governor Urjit Patel, enter wrath of the markets?
- The government has a troubling message for minority shareholders
- Opec-allies’ output cut may not amount to big shift in oil prices