Government employees can now expect a guaranteed minimum pension of 40% to 45% of their last drawn salary under the National Pension Scheme (NPS). This move comes after a committee was formed in April 2023 to review the pension system for a year leading up to the national elections in 2024. The current NPS requires employees to contribute 10% of their salary, with an additional 14% contributed by the government. The final payment is based on market returns on the fund, mostly invested in government debt.
However, some territories have reverted to the outdated and financially strained system of fully funding a guaranteed pension. As a result, Prime Minister Narendra Modi has been forced to rethink the current system. The revised pension scheme will allow both the employees and the government to contribute. The government officials have assured that they will not go back to the old pension system.
Many states, including Chhattisgarh, Himachal Pradesh, Rajasthan, and Jharkhand, have recently opted to withdraw from the old pension system. Pension is a major expenditure item in the Union Budget, but the revised pension scheme will not put much emphasis on budget maths. The current returns show that employees receive around 38% of their previous returns as pension. If the government guarantees 40% returns, it will only have to meet the shortfall of 2%.
In conclusion, the revised pension scheme will ensure that employees and the government both contribute towards a financially stable pension scheme. This agreement will solve the problems of the state and provide a guaranteed minimum pension for government employees.
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com
