In several media reports on Thursday, it was said that the central government may assure its employees of 40-45 per cent of their last pay as minimum pension under the new pension scheme or the National Pension Scheme (NPS).
However, now the Finance Ministry has issued a clarification in this matter. The Finance Ministry said that the committee constituted on the new pension scheme is currently in its deliberation phase and has not yet reached any conclusion.
In a tweet, the Finance Ministry said that several news reports stated that the government has made a proposal to fix a certain percentage of pension for employees. The Finance Ministry said, “These news reports are false.”
During the budget session, Union Finance Minister Nirmala Sitharaman had announced setting up of a committee headed by the Finance Secretary on pension issues. The statement said that this committee is currently in the process of deliberations and consultations with stakeholders. The committee has not yet reached any conclusion.
Earlier, news agency Reuters had said in a report quoting two sources that the government is considering a change in the rules of the New Pension Scheme (NPS). This change will be in such a way that the employees can get 40-45 percent of their last salary as pension for sure.
Explain that under the new pension scheme or National Pension Scheme (NPS), the employees have to contribute 10 percent of their basic salary and 14 percent to the government. The final payment to the employees depends on the returns that pension fund gets from the market. Pension funds invest mostly in debt schemes.
In contrast, in the old pension scheme, the employee did not have to make any contribution during his job and he was guaranteed 50 per cent of his last salary as pension after retirement.
