Good news! Govt will now contribute this much share in employee's pension fund
ABP News 2018-12-07 08:12:00
The report goes ahead to say that Prime Minister Narendra Modi-headed Cabinet has also allowed government employees to commute 60 per cent of the fund accumulated at the time of retirement. Currently, employees can commute 40 per cent of the fund accumulated. Also, employees will have the option to invest in either fixed income instruments or equities, sources said.
It is to be noted that none of these aforementioned changes will be application for employees associated with private organisations. According to the decision made by the Cabinet, if an employee does not want to commute any portion of accumulated funds in NPS while his/ her retirement and transfer all amount to the annuity scheme, then the employee’s pension would be 50 per cent of his/ her last drawn pay.
The government is yet to take a call the notification date for the new scheme, sources said that such changes usually come into effect from the starting of the new financial year – which in this case is April 1, 2019. The sources also mentioned that changes in the NPS structure was made by the Ministry of Finance based on the recommendation of a government-appointed committee.