P&H HC: Eyewitness Account Not Credible if Eyewitness Directly Identifies Accused in Court  ||  Delhi HC: Conditions u/s 45 PMLA Have to Give Way to Article 21 When Accused Incarcerated for Long  ||  Delhi High Court: Delhi Police to Add Grounds of Arrest in Arrest Memo  ||  Kerala High Court: Giving Seniority on the Basis of Rules is a Policy Decision  ||  Del. HC: Where Arbitrator has Taken Plausible View, Court Cannot Interfere u/s 34 of A&C Act  ||  Ker. HC: No Question of Estoppel Against Party Where Error is Committed by Court Itself  ||  Supreme Court: Revenue Entries are Admissible as Evidence of Possession  ||  SC: Mere Breakup of Relationship Between Consenting Couple Can’t Result in Criminal Proceedings  ||  SC: Bar u/s 195 CrPC Not Attracted Where Proceedings Initiated Pursuant to Judicial Order  ||  NTF Gives Comprehensive Suggestions on Enhancing Better Working Conditions of Medical Professions    

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 2024 - All Rights Reserved