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For All Defence Aspirants Streamlining Of National Pension system

For All Defence Aspirants Streamlining Of National Pension system

 

Streamlining Of National Pension System

In A Bid To Streamline The National Pension System(NPS) And Make It More Attractive, The Union Cabinet Has Approved Changes To Benefit Central Government Employees Covered Under It.

Key Highlights

Enhancement Of The Mandatory Contributions By The Central Government For Its Employees Covered Under NPS Tier-I From The Existing 10% To 14 % .

Providing Freedom Of Choice For Selection Of Pension Funds And Pattern Of Investment.

Tax Exemption Limit For Lump Sum Withdrawal On Exit Has Been Enhanced To 60 % With This,The Entire Withdrawal Will Now Be Exempt From Income Tax.

Contribution By The Government Employees Under Tier-II Of NPS Will Now Be Covered Under Section 80 C For Deduction Up To 1.50 Lakh For The Purpose Of Income Tax.

Impact Increase In The Eventual Accumulated Corpus Of All Central Government Employees Covered Under NPS.

Greater Pension Pay-Outs After Retirement Without Any Additional Burden On The Employee.

By Making NPS More Attractive For Its Employees, Government Will Not Only Retain But Also Attract The Best Best Talent.

National Pension System(NPS)

The National Pension System (NPS) Was Launched In 2004 With The Objectives Of Providing Retirement Income To All The Citizens. PS Aims To Institute Pension Reforms And To Inculcate The Habit Of Saving For Retirement Among st The Citizens.

Initially, NPS Was Introduced For The New Government Recruits (Except Armed Forces).With Effect From 1st May 2009, NPS Has Been Extended To All Citizens Of The Country Including The Unorganized Sector Workers On Voluntary Basis.

NPS Is Being Implemented And Regulated By Pension Fund Regulatory And Development Authority (PFRDA) In The Country.

National Pension System Trust (NPST)  Established By PFRDA Is The Registered Owner Of All Assets Under NPS.

Pension Fund Regulatory And Development Authority (PFRDA)

PFRDA Regulates NPS And Other Pension Schemes Subscribed By Public And Private Sector Employees.

Its Vision Is To Be A Model Regulator For The Promotion And Development Of An Organised Pension System To Serve The Old Age Income Needs Of People On A Sustainable Basis.

PFRDA Is A Statutory Body Which Derives Its Power From The Pension Fund Regulatory & Development Authority Act,2013.

PFRA Consists Of A Chairperson And Not More Than Five Members ,Of Whom At Least Three Shall Be Whole -Time Members.

NPS Is Structured Into Two Tiers:

Tier-I Account: This Is The Non -Withdraw able Permanent Retirement Account Into Which The Accumulations Are Deposited And Invested As Per The Option Of The Subscriber.

Tier-II Account: This Is A Voluntary Withdraw able Account Which Is Allowed Only When There Is An Active Tier I Account In The Name Of The Subscriber. The Withdrawals Are Permitted From This Account As Per The Needs Of The Subscriber As And When Claimed.

Overseas Citizens Of India(OCI),Persons Of Indian Origin (PIO) Card Holders And Hindu Undivided Family (Hufs) Are Not Eligible For Opening Of NPS Account.

 

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