Pension Update: The wait is still long for changes in the new pension system. According to sources, the government is in no hurry to make NPS attractive. The report of the committee formed to review the pension system is ready.
Big news is coming regarding the change in the new pension system. According to the news of CNBC-Awaaz, the government is in no hurry regarding the new pension system. According to sources, the committee formed to review the pension system has almost prepared its report, although there is still suspense regarding when it will be submitted. It is believed that without putting unnecessary financial burden on the government, the committee can recommend a pension of about 45-50% of the last salary received by the employee on retirement.
In the year 2004, the government started the National Pension Scheme. NPS gives investment approval to government employees.
Under this, they can invest their money by making regular contributions to the pension account throughout their career. After retirement, there is an option to withdraw a part of the pension amount in lump sum.
You can buy an annuity plan for the remaining amount. Annuity is a type of insurance product. A lump sum investment has to be made in this.
It can be withdrawn monthly, quarterly or annually. A retired employee gets regular income till his death. At the same time, after death, the nominee gets the entire money.
What is going to happen now-
- The wait for changes in the new pension system is still long. According to sources, the government is in no hurry to make NPS attractive. The report of the committee formed to review the pension system is ready.
- What is the suggestion! It is possible to suggest a pension up to 50% of the retirement basic. Pension is guaranteed through Viability Gap Funding. The shortfall in annuity will be covered by the central and state governments. There will be adjustment of cost of living in view of inflation.
- The new pension system is taking full care that there is no unnecessary financial burden on the governments, although it is not yet decided when the committee will submit its report. It is believed that the government will wait for the right opportunity to make changes in NPS.
