Supreme Court: Air Force Group Insurance Society qualifies as ‘State’ under Article 12  ||  SC: Anganwadi Workers With Degrees Are Eligible For The 29% Quota For Supervisors in Kerala  ||  SC: Giving Accused the Option of Search Before a Police Officer Breaches Section 50 of the NDPS Act  ||  Gujarat HC: Person is Entitled to Compensation For Injury or Death Within Railway Station Premises  ||  Delhi HC: PMLA Can Apply Even if the Scheduled Offence Occurred Before the Law Came Into Force  ||  J&K&L HC: Accused Can Admit Evidence Recorded under Section 299 Crpc After Appearing in Court  ||  J&K&L HC: District Judge Serving as Reference Court under Land Acquisition Act Acts as a Civil Court  ||  Del HC: Subsequent Bail Pleas From Same FIR Should Usually Go Before the Judge Who Denied the First  ||  J&K&L HC: Vaishno Devi Shrine Board, Despite Statutory Status, is Not a ‘State’ under Article 12  ||  SC: Confirmation of an Auction Sale Does Not Bar Judicial Scrutiny of Reserve Price Valuation    

New Pension Scheme (NPS); a shift from defined benefit Pension Scheme to defined contribution pension scheme - (10 Aug 2018)

Service

Due to rising and unsustainable pension bill and competing claims on the fiscal, Government has made a conscious move to shift from the defined benefit Pension Scheme to defined contribution pension scheme i.e. NPS. National Pension System (NPS) is regulated by Pension Fund Regulatory and Development Authority (PFRDA) created by an Act of Parliament. The basic functions of the PFRDA are to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers.

The maximum age limit from 60 years to 65 years for joining NPS-All Citizen Model and Corporate Sector Model, vide “PFRDA (Exits and Withdrawals under the NPS) (Second Amendment) Regulations, 2017” dated 6th October, 2017 has been raised. PFRDA vide “PFRDA (Exits and Withdrawals under the NPS) (Third Amendment) Regulations, 2018” dated 2nd February, 2018 has facilitated easy exit & withdrawal in case of disability and incapacitation of the subscriber covered under NPS. Subscribers can withdraw up to 25% of their own contributions before attaining age of superannuation, subject to certain conditions. The pension wealth which accumulates over a period of time till retirement grows with a compounding effect. Contribution made to the NPS Tier-I account is eligible for tax deduction under the Income Tax Act, 1961.

However, transparency and Portability is ensured through online access of the pension account by the NPS subscribers, across all geographical locations and portability of employments. The contributory pension system was notified by the Government of India on 22nd December, 2003, now named the National Pension System (NPS) with effect from the 1st January, 2004. The NPS was subsequently extended to all citizens of the country w.e.f. 1st May, 2009 including self employed professionals and others in the unorganized sector on a voluntary basis.

Tags : PENSION SCHEME   SHIFT   BENEFITS  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved