Central govt staff may get 50% of last pay drawn as pension under NPS
While the government has rejected the return of the Old Pension Scheme (OPS), it is open to providing a certain level of reassurance for the the National Pension System
Union Budget: The NDA government may offer 50% of the final pay drawn as a pension for central government employees who have enrolled under the National Pension System. This would be done in order to address their concerns regarding pension payouts, even though the Centre has said that the NPS will offer attractive returns for those who remain invested for 25-30 years, especially for those recruited after 2004.
The Somanathan committee reviewed global practices and studied outcomes in changes brought by state governments like Andhra Pradesh, the report claimed. After assessing the impact of offering assured returns, the report said that the government could soon guarantee 50 per cent of the last pay drawn for employees who serve 25-30 years.
Old Pension Scheme News : Central govt staff may get 50% of last pay drawn as pension under NPS
Post Name : Central govt staff may get 50% of last pay drawn as pension under NPS
Category : old pension
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Location :- India
Last Post Edited :- 11/07/2024
A committee, led by finance secretary T V Somanathan, was established following an announcement by finance minister Nirmala Sitharaman. While the government has rejected the return of the Old Pension Scheme (OPS), it is open to providing a certain level of reassurance, especially in light of the recent announcement by the Congress to reverse a decision made by the previous government under Manmohan Singh.
Budget expectations
The Somanathan committee has reviewed global practices and analysed the adjustments implemented by the Andhra Pradesh government. In addition, comprehensive calculations have been conducted to evaluate the impact of ensuring a specific return. While the Centre could potentially provide a guarantee of 40-45%, it may not fully address the concerns of employees with decades of service.
To address this concern, after the announcement made by Union Finance Minister Nirmala Sitharaman, Finance Secretary T.V. A committee was formed under the leadership of Somanathan. Meanwhile, the Somanathan Committee has looked at global experiences. Besides, the committee has also reviewed the results of the changes made by the Government of Andhra Pradesh. Along with this the Committee has also made extensive calculations for the effects of making certain returns available. Of course, it is possible for the government to give a guarantee of 40 percent to 45 percent. But if this matter is looked at from a political point of view, the employees who have been working for 25 to 30 years are not satisfied with the government's guarantee of 40 to 45 percent. As a result, the government is now internally talking about it.
It is being accepted that 50% of the final salary of the employees of the Center should be made available as pension. At a time when the Congress had announced a reversal of the decision taken by the then Manmohan Singh government, the central government has kept open the option of providing a decent level of pension while ruling out the possibility of reintroducing OPS. OPS is a defined benefit scheme. In which there is a provision to give 50 percent of the last salary as pension for life. Also this scheme can be changed as per the recommendations of Pay Commission. In contrast, NPS is a defined contribution scheme. Where government employees contribute ten percent of their basic salary as contribution while the central government contributes 14 percent.
Meanwhile, the Somanathan Committee has looked at global experiences. Also the committee made by Andhra Pradesh Govt....
Know your returns Central Government Scheme Returns (Returns in percentage from start)
The results of the changes have also been reviewed. Along with this the Committee has also made extensive calculations for the effects of making certain returns available. Of course, 40% to 45% guarantee can be given for the government. But if this matter is looked at from a political perspective, the employees who have been working for 25 to 30 years are not satisfied with the government's guarantee of 40 to 45 percent. As a result, it is now being accepted internally in the government that 50 percent of the final salary of the central employees should be made available as pension. This changed attitude of the government means that the Center will also have to revise the annual estimates from a funding perspective. Because, many committee members feel that the government does not have a pension fund available. So it is possible that this time the government can set up a retirement fund. Through which the government can provide financial benefits to its retired employees
It is being accepted that 50% of the final salary of the employees of the Center should be made available as pension. At a time when the Congress had announced a reversal of the decision taken by the then Manmohan Singh government, the central government has kept open the option of providing a decent level of pension while ruling out the possibility of reintroducing OPS. OPS is a defined benefit scheme. In which there is a provision to give 50 percent of the last salary as pension for life. Also this scheme can be changed as per the recommendations of Pay Commission. In contrast, NPS is a defined contribution scheme. Where government employees contribute ten percent of their basic salary as contribution while the central government contributes 14 percent.
Meanwhile, the Somanathan Committee has looked at global experiences. Also the committee made by Andhra Pradesh Govt....
Know your returns Central Government Scheme Returns (Returns in percentage from start)
The results of the changes have also been reviewed. Along with this the Committee has also made extensive calculations for the effects of making certain returns available. Of course, 40% to 45% guarantee can be given for the government. But if this matter is looked at from a political perspective, the employees who have been working for 25 to 30 years are not satisfied with the government's guarantee of 40 to 45 percent. As a result, it is now being accepted internally in the government that 50 percent of the final salary of the central employees should be made available as pension. This changed attitude of the government means that the Center will also have to revise the annual estimates from a funding perspective. Because, many committee members feel that the government does not have a pension fund available. So it is possible that this time the government can set up a retirement fund. Through which the government can provide financial benefits to its retired employees
On the other hand, officials say that people who have been for 25 years
Eligible under OPS for those who have worked for 30 years....
Eligible under OPS for those who have worked for 30 years....
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