A big bonanza for NPS subscribers ! In yesterday's cabinet meeting, Govt. decided to hike the benefit in NPS for Central Govt. employees though it is not officially announced as model code of conduct for the assembly election is currently in force.
As per the sources, Govt. enhanced employers' contribution by a hopping 4% while the employees' contribution to be remained at existing 10% of basic pay and D.A. Presently the employee and employer contribute 10% each for building a pension wealth which takes care of the lumpsum payment and pension provided by the anuuity service provider.
As per the Cabinet decision, if the employee decides not to commute any portion of the accumulated fund in NPS at the time of retirement and transfers 100 per cent to annuity scheme, then his pension would be more than 50 per cent of his last drawn pay, sources said.
As per the sources, Govt. enhanced employers' contribution by a hopping 4% while the employees' contribution to be remained at existing 10% of basic pay and D.A. Presently the employee and employer contribute 10% each for building a pension wealth which takes care of the lumpsum payment and pension provided by the anuuity service provider.
As per the Cabinet decision, if the employee decides not to commute any portion of the accumulated fund in NPS at the time of retirement and transfers 100 per cent to annuity scheme, then his pension would be more than 50 per cent of his last drawn pay, sources said.
While the government is yet to decide on the date of notification of the new scheme, sources said such changes usually come into effect from the beginning of a financing year, meaning April 1, 2019.
This formula for changes in the NPS was worked out by the Finance Ministry based on the recommendation of a government-appointed committee.
(With inputs from PTI News)
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