The government said in Parliament that there is no proposal pending with the Centre to restore the Old Pension Scheme (OPS) for central government employees covered under the National Pension System (NPS). Finance Minister Nirmala Sitharaman said in a written reply to a question in the Lok Sabha that the government had distanced itself from OPS due to the excessive fiscal burden on the exchequer.

What is the detail

NPS is a contribution-based scheme launched for Central Government employees (except armed forces) joining service on or after January 1, 2004. He said that a committee was constituted under the chairmanship of the then Finance Secretary to suggest measures for amendment in NPS with a view to improving pensionary benefits for such employees.

The reply said that based on the Committee’s deliberations with stakeholders, the Unified Pension Scheme (UPS) was introduced as an option under the NPS, which aims to provide prescribed post-retirement benefits to Central Government employees covered under the NPS. The Finance Minister informed that the features of UPS, including the definition of family, have been designed in such a way that along with ensuring payment, the financial stability of the fund is also maintained.

Benefits to these employees

She informed that government employees opting for UPS under NPS will also be eligible for the option of receiving benefits under CCS (Pension) Rules, 2021 or CCS (Extraordinary Pension) Rules, 2023 in case of retirement on the basis of death or disability during service. Sitharaman informed that UPS was introduced as an option under NPS by the government through a notification on 24 January 2025. In a written reply to another question, the minister informed that household financial liabilities have increased by about 5.5 percentage points from March 2020 to March 2024, while household financial assets have increased by 20.7 percentage points during the same period.

Further, he pointed out that as per the latest data published by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, net domestic financial savings are set to increase from Rs 13.3 lakh crore in 2022-23 to Rs 15.5 lakh crore in 2023-24, hence it is not a systemic concern for the asset quality of Indian banks.

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The Modi government has made another big announcement in the interest of central employees. Now all the tax benefits available under the National Pension System (NPS) will also be applicable on the Unified Pension Scheme (UPS). Through this, the government is trying to make UPS more attractive for central employees.

UPS is an alternative to NPS

Earlier this year, the Integrated Pension Scheme was introduced for central employees from April 1, 2025. It has been introduced as an option under the NPS. Existing government employees who are already under NPS have also been given a one-time option to switch to UPS. That is to say, it is not mandatory for central employees enrolled under NPS.

what did the government say

According to the information given by the Finance Ministry, employees choosing UPS will get all the tax benefits that are available under NPS. This includes TDS and other tax benefits, which make this scheme more financially attractive. This decision brings parity between the two schemes and gives a level playing field to employees choosing UPS instead of the traditional NPS.

Features of Integrated Pension Scheme

Unified Pension Scheme (UPS) provides a guaranteed pension. In this, the government gives 18.5 percent of the employee’s basic salary and dearness allowance. At the same time, the employee contributes 10 percent. This scheme has been introduced to replace NPS for new employees of the Central Government and as an alternative to NPS for existing employees. Talking about NPS, it is a retirement benefit scheme launched by the Government of India to provide regular income facility after retirement for all the subscribers.

Deadline to choose the option is 30 September

Recently, the government extended the deadline for employees to exercise their option under UPS by three months to September 30. Earlier, eligible employees, including existing government employees, retired employees and spouses of deceased retired employees, had to exercise their option under UPS by June 30, 2025.

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The press release issued by the government said, “In view of the requests received from stakeholders, the last date for opting for UPS option has been extended by three months to September 30, 2025. This deadline will apply to current employees, pre-retired employees and duly married wives of deceased retired personnel.”

Who got the benefit?

The post UPS vs NPS Deadline extended – Now central employees will get additional time to switch from NPS to UPS first appeared on Rightsofemployees.com.

What is NPS?

National Pension Scheme (NPS) is a government-run, market-linked investment scheme, open to all Indian citizens between the ages of 18 and 70, whether you are salaried or self-employed. In this, you can divide the investment into shares, government bonds, corporate bonds or other options as per your choice.

This scheme gives the investor the freedom to choose the fund manager and asset allocation of his choice. If you are young and investing for a long term, you can get better returns by investing up to 75 percent in equity through Active Choice. Its average annual return is considered to be 8 percent to 12 percent.

What is VPF?

VPF i.e. Voluntary Provident Fund is an extension of EPF (Employees Provident Fund). It is available only to salaried people who are already registered with EPF. In this, the employee can contribute up to 100 percent of his basic salary and dearness allowance.

The returns of VPF are stable, which is around 8 percent to 8.5 percent per annum and it is a fully government guaranteed scheme. Its money is managed by EPFO ​​(Employees Provident Fund Organisation), which makes the risk zero.

Tax and withdrawal benefits

Both NPS and VPF are tax-free, but NPS offers an additional deduction of Rs 50,000 under section 80CCD (1B). On the other hand, if you invest in VPF for 5 consecutive years, the interest and maturity amount become tax-free.

VPF is more flexible in terms of withdrawal, you can withdraw money after 5 years if required. On the other hand, in NPS, the investment remains locked till the age of 60 and it is mandatory to take at least 40 percent of the amount annually (monthly pension) on maturity.

Who is better for?

NPS: If you are running your own business or want high returns over the long term while working, NPS is a better option. It provides tax planning as well as retirement security.

VPF: If you want to avoid risk and prefer a stable, government-guaranteed return, VPF would be right for you.

Some people can also avail both the stability scheme from VPF and the growth scheme from NPS.

In simple words, if you are young and want to invest for a long term, NPS may be better for you. But if you do not want to take much risk and prefer safety, then you can opt for VPF.

The post Is NPS or VPF best for retirement planning? Read full information first appeared on Rightsofemployees.com.

Start investing from ₹1000

According to the NPS Vatsalya calculator, if a parent starts investing from the time of their child’s birth – let’s say the child is born on May 1, 2025 – and puts just ₹1,000 into the scheme every month, this small amount can turn into a huge sum.

Under this scheme, if ₹ 1000 is invested continuously per month for 18 years, the total investment will be ₹ 2,16,000. But assuming 10% annual return, this amount will increase to ₹ 6,01,909.

A fund of Rs 4 crore will be ready.

The NPS Vatsalya scheme also provides an option to withdraw up to ₹2.5 lakh from this fund at the age of 18 and invest the remaining amount in a pension scheme. If the same investment is made continuously till the age of 60, the estimated pension fund can reach ₹4 crore (₹4,00,59,576) – meaning your child can become a millionaire at the age of 60.

Pension will continue to be received

As per NPS rules, you are required to keep at least 40% of the funds reserved for Annuity. With this, you will continue to receive pension on 40% of the money deposited. After 60 years, whatever the rate of annuity is at that time, this money will get interest and will generate pension from it. The remaining 60% of the money can be withdrawn. The funds for annuity can also be increased, due to which the pension amount increases.

(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. rightsofemployees recommends its readers and viewers to consult their financial advisors before making any financial decisions.)

The post NPS Vatsalya Calculator: Your child will become a millionaire! Start investing from Rs. 1000 first appeared on Rightsofemployees.com.

There has been a big change for those customers investing in the pension scheme under the National Pension System (NPS) who have given up Indian citizenship. Those who no longer have an Overseas Citizen of India (OCI) card. The Pension Fund Regulatory and Development Authority (PFRDA) has issued new guidelines in this regard by issuing a circular on 21 April 2025.

What is said in the circular?

According to the circular, such subscribers who have given up Indian citizenship on papers and who do not have an OCI card, will have to immediately inform the NPS Trust about the change in their citizenship. Along with this, proof of this will also have to be given. After this, the NPS account of the concerned person will be closed and the entire pension amount deposited in it will be transferred to his NRO (Non-Resident Ordinary) account.

What is giving up Indian citizenship?

Renunciation of Indian citizenship means voluntarily giving up your Indian citizenship. This usually happens when an Indian citizen acquires citizenship of another country. Dual citizenship is not allowed in India, so this is a legal process.

Who can open an NPS account?

Any Indian citizen between the ages of 18 and 70 can open an NPS account. Apart from this, NRI and OCI cardholders can also open an account under certain conditions.

What should NPS subscribers do now?

If a subscriber has renounced Indian citizenship and does not have an OCI card, he needs to immediately inform the NPS Trust and submit the required documents.

How to close NPS account?

To close the account, the subscriber has to submit a signed affidavit confirming renunciation of citizenship, a copy of the renunciation certificate, surrender certificate or cancelled Indian passport. After verification, the NPS Trust and the concerned Record Keeping Agencies (CRAs) will complete the account closure process and the amount will be transferred to the NRO account.

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The post NPS account: Govt has changed the rules, these NPS accounts will be closed soon, know all details first appeared on Rightsofemployees.com.

New Delhi. The government is going to give a big gift to the lakhs of employees of the country who are demanding the old pension scheme (OPS). Amidst the protest going on for 2 decades regarding NPS and the demand for restoration of old pension, the government has ordered to provide facilities in the new pension scheme like the old one. The Central Pension Accounting Office (CPAO) has issued instructions to all the concerned officials to operate the NPS pension cases in the same manner as the old pension scheme (OPS).

Earlier, on December 18, 2023, the CPAO had issued guidelines to ensure that retired employees under the National Pension System (NPS) get their pension on time. The Office Memorandum (OM) dated March 12 urged the Pay and Accounts Offices (PAOs) to comply with the order. The CPAO noted that in some cases PAOs are submitting three copies while submitting NPS cases. As per the new instructions, they should submit only two copies. One of the pensioner and the other of the distributor. This is causing unnecessary delay in the disbursement of pension amount.

What were the deficiencies found?

According to the CPAO, it has been observed that some PAOs have not followed the guidelines while submitting NPS cases as OPS cases. Specifically, it has been observed that the PAOs have submitted three (03) copies of Provisional PPO (which was earlier used for submitting NPS cases to the CPAO) while submitting NPS cases as OPS cases, whereas only two (02) copies of PPO booklets (Pensioner Portion and Disburser Portion) should be submitted to the CPAO along with the cases. The Authority has urged the CCAs and CAs to strictly follow the updated guidelines.

Instructions issued to banks also

In view of its orders, the Authority has requested all the Chief CCAs/CCAs/CAs (with independent charge)/AGs to instruct the PAOs under their control to strictly follow the guidelines given in the previous OM issued by the CPAO on 18.12.2023. Similarly, all CPPCs of authorized banks are also requested to carefully read the OM issued by this office and subsequent orders in this regard and act accordingly.

What is the new rule of NPS?

Under the new rules of CPAO, the pension process of employees retiring under NPS will be made similar to the process of OPS. Its purpose is to make pension distribution fast and transparent. This will help NPS beneficiaries to get pension on time and without any hassle. Currently, employees have to wait a long time to get NPS money, because its maintenance work remains with PFRDA and Fund House, which is linked to the market. This is the reason why emphasis is being laid on providing facility like OPS by simplifying the rules of withdrawal from NPS.

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The post New guidelines for National Pension System – Employees will get security like OPS; check details first appeared on Rightsofemployees.com.

National Pension System (NPS) is a government scheme that provides financial security after retirement. In this, people can create their pension fund by investing regularly and can also avail many benefits like tax exemption.

NPS account holders can withdraw money after retirement based on the amount deposited and the returns received on it. Apart from this, they can check the balance. They can manage the savings and increase the investment amount whenever they want.

What is NPS statement?

NPS Statement, also known as Statement of Transactions (SOT), is a document that contains a record of all the transactions related to your account. It includes.

• Investment details
• Full account status
• Information on withdrawal of money i.e. redemption
• Account Balance (Holding Value)

According to the NPS Trust, once every year its physical copy is sent to the registered address and the soft copy is also available through email.

How to download NPS statement in physical copy?

If you want to download NPS statement online, follow the steps given below.

• Visit the official website of NSDL.
• Login with username and password.
• Enter the captcha code and click on Proceed.
• Go to Transaction Statement and select Holding Statement.
• The account balance will be displayed on the screen. To download the complete statement, select Transaction Statement and click on Download button.
• Download NPS statement from mobile app
• You can also download NPS statement from the mobile app.
• Download the NPS app from Google Play Store or Apple Store.
• Enter 12 digit NPS User ID and reset password with OTP.
• After login, you will get the option to download transaction statement of Tier 1 and Tier 2 accounts.

Why is NPS statement necessary?

• Complete information about account transactions is available.
• This is an important document for tax savings.
• Helps in tracking investments and financial planning.

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The post NPS: You can download National Pension System statement online, know how first appeared on Rightsofemployees.com.

How does D-Remit work

Earlier, transferring NPS funds required a manual process and a lot of documentation, which took a lot of time. But now with the help of D-Remit, you can transfer funds online from your NPS account itself, and that too in a quick and easy way.

Benefits of D-Remit

1. Easy fund transfer: D-Remit helps subscribers maintain the same NPS account even after changing jobs or cities. The transfer process is done online, reducing administrative delays.

2. Continuity in investment: Many times there is a gap in NPS contribution due to change of job or fund manager, but with D-Remit this problem will be eliminated and your investment plan will remain intact.

3. Speed ​​and Efficiency: D-Remit processes transfers between NPS accounts quickly, ensuring optimal utilisation of your funds without any delay.

Why is D-Remit necessary in NPS?

D-Remit is not just a facility, but a big step towards making NPS more easy and effective. This is a great feature especially for people working in the private sector or those who change cities frequently. The Pension Fund Regulatory and Development Authority (PFRDA) is constantly working on making NPS more convenient and D-Remit is a great innovation in this direction.

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There is a facility to invest in this scheme till the age of 60 years. After that the pension starts. However, in the meantime, many people may have a question in their mind that how can we close this account before time and withdraw money. Let us tell you its step-by-step process.

Rules for Government servants 

Premature exit from NPS for a Government employee is applicable when the employee resigns, voluntarily leaves the job, is terminated, or is removed by the Government. If the amount on the date of initiation of premature exit request is equal to or less than ₹2.50 lakh, the entire amount can be withdrawn in one go. If the amount is more than ₹2.5 lakh, at least 80% of the total pension assets should be used to purchase annuity. This will provide monthly pension to the subscriber. The subscriber will receive a lump sum payment of the remaining 20% ​​amount.

How to withdraw?

• Log in to the NPS portal.
• Go to the “Withdrawal Request” section.
• Upload the required documents and submit the request.
• The money will be transferred to your bank account once the request is approved by PFRDA.

Rules for private sector employees 

If a private sector employee wishes to voluntarily close his Permanent Retirement Account Number (PRAN), the premature withdrawal rule applies, provided he has been registered with NPS for five years. If the corpus on the date of initiation of premature withdrawal request is equal to or less than ₹2.50 lakh, the entire corpus can be withdrawn as a lump sum, as is the case in the government sector.

Similarly, if the corpus initiated is more than ₹2.5 lakh, at least 80% of the corpus must be used to purchase annuity. For subscribers joining NPS after the age of 60, premature withdrawal applies before completion of three years under NPS. The rules and regulations for the non-government sector are the same as for subscribers who joined NPS before the age of 60. In case of untimely death of the subscriber, his nominee will receive the entire amount as a lump sum payment, or the nominee can choose to receive annuity.

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The post How to withdraw money from NPS account before retirement? Know the step-by-step process here first appeared on Rightsofemployees.com.

This scheme will be implemented from April 1, 2025. The aim of this scheme is to provide more secure pension service to the employees. According to the notification issued by the government, once an employee opts for UPS, he will not be able to go back to NPS. This scheme is not only for Central Government employees, but State Governments can also implement it for their employees if they want.

Pension and benefits

Under the Unified Pension Scheme, 50% of the average basic pay of the last 12 months preceding retirement will be given as pension, provided the employee has completed at least 25 years of service. If the employee has completed 10 to 25 years of service, then a minimum monthly pension of Rs. 10,000 will be given. Employees taking voluntary retirement, who have completed 25 years of service, will start getting this pension from the same age at which they used to take normal retirement. In case of death of the pensioner, the family will get 60% of the pension.

There will be relief from inflation.

The government has made it clear that pension, family pension and minimum pension will be linked to dearness relief. This will be beneficial as inflation will not affect pensioners.

Lump sum on retirement

At the time of retirement, employees will get an additional amount in addition to gratuity. This amount will be 1/10th of the basic salary and dearness allowance for every six months of complete service. This lump sum will not have any impact on the pension.

Pension Fund and Contributions

Two funds will be created under the Unified Pension Scheme.

Individual Corpus: In this, there will be equal contribution from the employee and the central government.

Pool Corpus: The government will make an additional contribution to this. Employees will have to contribute 10% of their basic salary + Dearness Allowance (DA), which will be deposited in equal proportion by the government. In addition, the government will contribute an additional 8.5% to the pool fund.

Investment options

Employees will have the freedom to choose the investment option for their personal funds. If an employee does not choose the option, the default investment plan prescribed by the Pension Fund Regulatory and Development Authority (PFRDA) will apply.

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The post New Pension Scheme will be implemented from 1 April 2025, pension of Rs 10000 will be given monthly first appeared on Rightsofemployees.com.

National Pension System (NPS) is an excellent investment option for retirement fund and monthly pension. By investing in NPS, you can not only secure your retirement but also avail tax exemption. In NPS, the investor gets a lump sum amount after retirement and along with it, he also gets the benefit of monthly pension. The special thing is that there is no tax on the amount received on maturity. If you think that investment can be made in NPS only during the job, then you are wrong.

According to the new rules, investment in NPS can be continued even after retirement. The Pension Fund Regulatory and Development Authority (PFRDA) has made several changes to make NPS more flexible. Now investment can be made even between the ages of 60 and 65, and the subscriber can continue contributing to NPS till the age of 70.

60% can be withdrawn on maturity

The entire fund cannot be withdrawn from NPS on maturity. 40 percent of the total fund is mandatorily used for annuity, which provides pension after retirement. The remaining 60 percent amount can be withdrawn in lump sum. If you do not want to withdraw your NPS deposits even after retirement, the government allows you to do so.

You get tax exemption

Investing in NPS also gives the benefit of tax exemption. You are entitled to tax deduction under sections 80CCD(1), 80CCD(1B), and 80CCD(2) of the Indian Income Tax Act, 1961. An additional deduction of up to Rs 50,000 can be availed on investment in NPS under section 80CCD(1B), which is in addition to the tax exemption of Rs 1.5 lakh under section 80C.

Types of NPS accounts

There are two types of accounts in NPS: Tier 1 and Tier 2. Tier 1 account is a retirement account, in which certain conditions apply for withdrawal of money. On the other hand, Tier 2 account is like a savings account, from which you can withdraw money without any restrictions.

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The post New NPS Rule: Can you invest even after retirement? these are the rules first appeared on Rightsofemployees.com.

By investing in it, a large fund is created in the long term, which is very useful after retirement. Along with this, there is also a regular income in the form of pension every month.

But, these benefits are available only after the subscriber turns 60 years old. That is why many people do not invest in NPS , because they think that the money deposited in NPS will not be of any use to them if they need money in between. But, this is not true. Withdrawal of money from NPS is allowed before the subscriber turns 60 years old. Let us know what are the terms and conditions for this.

1. Partial Withdrawal

The subscriber is allowed to withdraw some money only after three years of opening the NPS account. The condition is that the subscriber can withdraw 25 percent of his total contribution. This will not include the employer’s contribution. PFRDA has allowed withdrawal of 25 percent contribution in certain situations.

-Higher Education: The subscriber can withdraw money for his or his children’s higher education.

-Marriage: The subscriber can withdraw this money for his or his children’s marriage.

-To buy a house: If the subscriber does not own a house then he can withdraw the money to buy a house.

-For treatment: The subscriber can withdraw money for the treatment of himself, his wife/husband or children. But, this money can be withdrawn only for the treatment of serious diseases like cancer, kidney and heart disease.

It is important to note that a subscriber is allowed three partial withdrawals during the NPS tenure. There should be a gap of at least 5 years between one withdrawal and another.

2. Premature exit (withdrawal before the age of 60)

If for any reason a subscriber wants to withdraw money from NPS before the age of 60, then he can withdraw the money after 10 years of opening the account. But, there are some conditions for this.

-80% of the corpus should be used to buy an annuity. This annuity will give you pension every month.

-It is allowed to withdraw 20% of the corpus i.e. total funds in lump sum.

This means that if the subscriber wants to withdraw his money after 10 years, he will have to use 80% of the total fund created to buy an annuity. This will give him a pension every month, which is the main purpose of investing in NPS.

3. Exit on death before 60 years

If the subscriber dies before the age of 60, then his nominee or legal heir can withdraw the entire amount deposited in NPS in lump sum. In such a situation, there is no need to buy annuity. This way the subscriber’s family gets the entire money in lump sum.

4. How much tax will be charged?

It is important to understand the tax rules applicable on premature withdrawal of money. Partial withdrawal i.e. up to 25% of NPS corpus is tax-free. If the subscriber wants to withdraw the entire amount before the stipulated time, then 20% of the lump sum amount will be taxed. Keep in mind that in case of premature withdrawal of the entire amount, only 20% of the money is allowed as lump sum withdrawal. You will have to buy annuity with the remaining money. The pension received from the annuity will be taxed as per the subscriber’s income tax slab.

From the above rules for withdrawal before attaining the age of 60, it is clear that PFRDA has allowed the subscriber to withdraw money if necessary. But, it has also kept in mind that the subscriber’s main motive for investing in NPS should be to get a regulated income after retirement.

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The post NPS Exit Rules: You can withdraw money from NPS even before the age of 60, Details Here first appeared on Rightsofemployees.com.

Retirement planning is not a one day job. The sooner you start, the more you will benefit. An option like NPS can help you create a big fund for retirement by saving a little every month. Here we will understand how much investment in NPS at the age of 35 can get you a pension of Rs 2 lakh every month after the age of 60.

NPS is a type of retirement fund. You invest in it every month. You can invest in equity, corporate debt, government bonds and other options as per your choice. After the age of 60, you can withdraw a lump sum amount and get pension every month from the remaining amount.

The thing to keep in mind is that the pension received from NPS depends on how much money you have deposited and what is the interest rate at the time of retirement.

Let’s understand with an example…

Suppose you are 35 years old and want to invest in NPS for the next 25 years. Your target is to get a pension of Rs 2 lakh per month after the age of 60. For this, you will have to deposit a total of Rs 2.77 crore in NPS by the age of 60. This calculation is based on the assumption that you will get an average annual return of 10% on your investment for 20 years.

As per the rules of NPS, you have to use 40% of your total accumulated amount to buy an annuity plan. This means that you have to buy an annuity plan with Rs 1.11 crore at the time of retirement. You will be left with a lump sum amount of Rs 1.66 crore.

Suppose you get 6% annual return from annuity plan. So an annuity plan of Rs 1.11 crore will give you a pension of around Rs 60,648 every month.

You can invest the remaining Rs 1.66 crore in a good hybrid mutual fund under Systematic Withdrawal Plan (SWP). If you get 10% annual return on this investment, then you can withdraw about Rs 1,39,993 every month. In this way, you will get a total income of Rs 2,00,581 every month from annuity and SWP.

Now the question is, how much will you have to invest every month in NPS to create a fund of Rs 2.77 crore in 25 years?

For this, you will have to deposit Rs 20,700 every month in NPS from the age of 35 years.

Here all this information is given through a table….

The post New Pension Scheme! By investing Rs 20,700, you can get a pension of Rs 2 lakh after 25 years first appeared on Rightsofemployees.com.

This guideline has been issued on 7 October 2024 by the Department of Pension and Pensioners under the Ministry of Personnel, Public Grievances and Pensions. Under the new guidelines, some changes have been made in the process and rules of NPS contribution, which will be reviewed from time to time.

What is NPS

The National Pension System (NPS) is a pension scheme in which 10% of the employee’s basic salary and dearness allowance (DA) is deducted for the pension fund. In addition, 14% of the basic salary is contributed by the government. NPS is linked to the stock market, which means that the pension of government employees directly depends on the fluctuations of the market. After retirement, 40% of the NPS is invested in annuity so that pension can be received after retirement. However, this scheme does not offer a guaranteed pension, due to which there is dissatisfaction among government employees.

Will be reviewed from time to time

The new memorandum issued by the government clarifies that employees will have to contribute 10 percent of their monthly salary to NPS. This contribution will be rounded off to the nearest whole rupee. Along with this, this contribution will be reviewed from time to time so that any kind of mistake in it can be corrected. If there is any error in calculating the contribution, it will be deposited in the employee’s pension account along with interest.

You can continue your contribution even after suspension

If an employee is suspended, he will have the option to continue making NPS contributions. After the suspension ends, when the employee returns to service, the contribution will be recalculated based on the new pay structure prevailing at that time. This will ensure that the pension contribution of employees is not affected during the suspension period.

Contribution is mandatory even during the probation period

According to the new guidelines, if an employee is absent or on leave without pay, he will not be required to make NPS contribution for that period. However, it will be mandatory for employees working on probation to make NPS contribution, even if they are transferred to another department or institution.

Contribution will be given along with interest on delay

The Drawing and Disbursing Officer will deposit the contribution deducted from the salary of the employee every month. After this, the Pay and Accounts Officer will compile all the contributions by the end of the month and send it to the Trustee Bank. The deadline for depositing the contribution will be fixed especially for the month of March. If there is any delay or mistake in depositing the contribution, the employee will get his entire contribution back along with interest.

Why is the new guideline important

This new guideline is important because it provides employees with more clarity and security regarding their NPS contribution. This will ensure that if there is any error in the salary or contribution of an employee, he will get the benefit with interest on time. Also, the rights of the employees to their pension contribution will remain secure even in situations like suspension or transfer.

Unified Pension Scheme (UPS) announced

Recently, after the demand of government employees, the government has announced the Unified Pension Scheme (UPS). This scheme will be implemented from April 1, 2025. Under this scheme, the employee will not be responsible for funding the pension. The government will bear 18.5% of the basic salary of the employees. This is a guaranteed pension scheme, in which employees who have served for more than 10 years will be entitled to receive a minimum pension of Rs 10,000. Apart from this, a lump sum amount will be given at the time of retirement under UPS. In this, retiring employees will be entitled to receive 50% of their last 12 months’ average basic salary as pension.

Difference between NPS and UPS

While NPS is based on the stock market and does not provide guaranteed pension, employees in UPS will be given guaranteed pension. Employees in UPS will get gratuity as well as a lump sum amount. After retirement, the employee will receive a certain percentage of his salary as pension, which will secure his future.

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The National Pension System (NPS) has emerged as a game-changing scheme for India’s retirement planning sector, launched on January 1, 2004. Now the central government has issued new guidelines for contribution to the National Pension System (NPS). The Department of Pension and Pensioners, working under the Ministry of Personnel, Public Grievances and Pensions, has shared an office memorandum dated October 7, 2024, which gives information about the changes in the rules related to NPS contribution of employees.

According to a report by Financial Express, the guidelines also reiterate some existing provisions, including the requirement for a 10 per cent contribution from the monthly salary to be deposited in the NPS. The memorandum states that this contribution will be reviewed from time to time, but the amount will always be rounded up to the nearest whole rupee.

Contribution can be continued even after suspension

If an employee is suspended, he will have the option to continue his NPS contribution. If he rejoins service after the suspension is lifted, the contribution will be recalculated based on the salary at that time.

As per the new guidelines, it is mandatory for employees on probation period to make NPS contribution so that their pension savings can start as soon as possible .

In case of delay in depositing the contribution, the full amount along with interest will be given
. It has been clarified in the guideline that if there is any mistake in the contribution, then it will be deposited in the pension account of the beneficiary along with the interest.

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According to a media report, the guidelines confirm the existing provisions that mandate a contribution of 10% of the monthly salary to the NPS. The amount will always be rounded off to the nearest whole rupee.

At the same time, during the period of suspension, employees can choose to continue their contribution. If the suspension is later considered as duty, the contribution will be recalculated based on the salary at that time.

Who has to contribute and who does not?

All discrepancies in contribution will be credited to the pension account along with applicable interest. Employees who are absent or on unpaid leave will not be required to contribute. Employees working on deputation in other departments or other organizations will also have to contribute to NPS, if they have not been transferred etc.

Employees on probation will also have to make mandatory contributions. In cases where there is a delay in depositing the contribution, the affected employees will get their contribution along with interest.

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New Delhi. If you also want to get a big pension after your retirement, then National Pension System (NPS) can be a good option for you. NPS is a government scheme, which is linked to the market, that is, its return is based on the market. In this scheme, you get the benefit of monthly pension after maturity. If you want, you can also do partial withdrawal at the time of need.

As per NPS Tier-I norms, a person can exit the scheme only after turning 60 years old. Since the aim is to save for retirement, the rules do not make regular withdrawal easy. However, subscribers have the option to make partial withdrawals during the scheme term for urgent needs. Let’s know about the rules for partial withdrawal and premature exit

Partial Withdrawal

NPS allows subscribers to make partial withdrawals for specific purposes after a lock-in period of 3 years.

• After completion of 3 years, you are allowed to withdraw only 25% of your contribution (excluding earn returns).
• Contributions made by your employer to your NPS account will not be considered for calculating the partial withdrawal limit.
• You can make such withdrawals a maximum of 3 times during the entire investment period.
• One can make partial withdrawal to purchase a house, treatment of serious illnesses, disability, education, marriage of children or to start a new venture.

Premature exit

NPS account remains open till the age of 60 years, but you can exit it even before that, but for this you will have to pay some price.

• First of all, you can exit this scheme only after completing 5 years. If you have started investing in NPS after completing 60 years of age, then you can withdraw money after three years.
• You can withdraw only up to 20 per cent of the amount as a lump sum.
• In case of premature withdrawal, you will be able to withdraw only 20 per cent of the fund in lump sum.
• You will have to use the remaining 80 percent of the money to buy annuity. This amount will be used to give you pension for life.
• If the total amount deposited in your fund is less than Rs 2.5 lakh, then you will be allowed to withdraw the entire amount in one lump sum.

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This has been identified as the Unified Pension Scheme (UPS). Now there are many questions in the minds of central employees, let us answer those questions sequentially.

What is Unified Pension Scheme (UPS)?

Under this scheme, government employees will now be entitled to get 50 percent of the average basic salary received in the last 12 months before retirement as pension. The minimum service period for getting 50 percent of the salary as pension should be 25 years. However, pension will be given proportionately for a minimum service period of up to 10 years.

Who is the scheme for?

The National Pension System (NPS) is applicable to all central government employees who joined service after April 1, 2004. All the employees who joined service after 2004 and have retired or will retire by April 1, 2025 will also get the opportunity to choose this option. This pension scheme provides benefits based on contributions instead of the defined benefit applicable to employees before NPS.

How is it different from NPS?

The employees’ contribution for UPS has been kept at the same rate as the current system of NPS at 10 percent, while the government has decided to increase its contribution from 14 percent to 18.5 percent. Along with this, Dearness Relief (DR) will be given at the same rate at which dearness allowance is given. In this way, half of the total salary pension will be given in UPS in proportion to the pension received under the old pension scheme.

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This pension scheme also has provisions for family pension, guaranteed minimum pension and lump sum payment after retirement. However, all these features are not available in NPS.

When will it be implemented?

The new scheme is effective from April 1, 2025. As soon as it is implemented, NPS account holders can opt for the Unified Pension Scheme i.e. UPS. By implementing UPS, the government will have to spend about Rs 800 crore in the current financial year as arrears, while about Rs 6250 crore will be spent for UPS.

What about family pension?

Similarly, if a pensioner dies, his family will get 60 percent of the pension received by the deceased at the time of death. DR of 60 percent will also be given on this. If someone leaves the job after working for a minimum of 10 years, then he will get a minimum pension of ten thousand rupees. Those who have worked for more years will get more pension in the same proportion.

What about gratuity?

Under UPS, apart from the gratuity amount, another lump sum amount will be given on retirement. This amount will be given on retirement by adding 10th part of the monthly salary (salary DA) for every six months of service.

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This change will apply to both public and private companies in the new tax regime. Government employees already get a deduction on employers’ contribution of up to 14%.

Deduction on 14% contribution only in the new regime

Deduction under section 80CCD (2) is available in both the old and new tax regimes for NPS . However, the deduction on 14% employer’s contribution is available only in the new income tax regime. Finance Minister Nirmala Sitharaman said in her budget speech, “In order to increase social security benefits, it is proposed to increase the deduction on employer’s contribution to NPS from 10% to 14% of the employee’s salary.” This means that taxpayers using the old regime will be able to avail the deduction only on 10% employer’s contribution (of basic salary).

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NPS is a government retirement scheme

National Pension System or NPS is a retirement benefit scheme of the government. Apart from people working in private companies, common people can also invest in it. When the subscriber turns 60 years old, he gets regular pension from this scheme. Under this scheme, the subscriber’s contribution is invested in different types of assets. The subscriber can use low risk and high risk investment options according to his risk taking capacity.

Interest in NPS will increase after the announcement in the budget

There are two types of accounts in NPS – Tier 1 and Tier 2. Tier 1 is a pension account, which focuses on retirement savings. Tier 2 is a voluntary savings account. Experts say that the attraction of this scheme has increased due to the Finance Minister’s decision to increase the deduction on the employer’s contribution in NPS. Now private sector employees can show more interest in this scheme.

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Your options include Public Provident Fund (PPF), National Pension System (NPS), Sukanya Samriddhi Yojana (SSY), Monthly SIP in Equity Linked Scheme (ELSS), Employees Provident Fund (EPF), Tax Saving Fixed Deposits (FDs) and payment through life insurance premium.

Investors with low risk appetite and investors in lower tax brackets can try tax saving FDs. However, you need to remember that your money will be locked for five years. You can compare term deposit rates of different banks to find the best option. This is calculated on the basis of quarterly compounded interest rate. BankBazaar.com has collected data related to this. This data is of 26 June 2014.

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Axis Bank, HDFC Bank and ICICI Bank are offering 7 percent interest on tax-saving FDs. If you have invested Rs 1.5 lakh in a tax-saving FD for 5 years at this rate, it will grow to Rs 2.12 lakh in the respective period. Similarly, Canara Bank is offering 6.70 percent interest on tax saving FDs. If you can invest Rs 1.5 lakh for 5 years at this rate, the tax-saving FD will grow to Rs 2.09 lakh.

Bank of Baroda, Punjab National Bank, State Bank of India and Union Bank of India are offering 6.5 percent interest rate on tax saving FD. At this rate, if Rs 1.5 lakh is invested in tax saving FD for five years, it will grow to Rs 2.07 lakh. Indian Bank’s rate on tax saving FD is 6.25 percent. According to this, if Rs 1.5 lakh is invested in 5 years, this FD will grow to Rs 2.05 lakh.

The tax FD rate of Bank of India is 6%, that is, if you deposit Rs 1.5 lakh in it, you will get Rs 2.02 lakh in 5 years. Reserve Bank (RBI) subsidiary Deposit Insurance and Credit Guarantee Corporation (DICGC) also gives fixed returns on FD of Rs 5 lakh.

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Under this, employees will get a guarantee of up to 50 percent of the last basic salary as pension. In simple language, 50 percent of the last basic salary of the employee before retirement will be given as monthly pension.

Panel to be formed in 2023

In fact, during the second term of the Narendra Modi government, a panel was constituted in March 2023 under the chairmanship of Finance Secretary TV Somanathan. This panel was formed to suggest ways to increase pension benefits under NPS for government employees without returning to the Old Pension System (OPS). The government took this decision at a time when many states have started abandoning NPS and returning to OPS.

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Mention of Andhra Pradesh model

According to the news of Financial Express, the panel has submitted its report to the government in the month of May. This report is largely influenced by the Andhra Pradesh NPS model implemented in 2023. It can be called a mixed model of old and new pension scheme. Under the Andhra Pradesh Guaranteed Pension System (APGPS) Act, 2023, government employees will be given 50 percent of their last salary as monthly pension. This will also include dearness relief i.e. DR. Apart from this, the spouse of the deceased employee is guaranteed a monthly pension of 60 percent of the guarantee amount.

What does this proposal of NPS say?

Under the new proposal, central employees will get a guaranteed pension of up to 50 percent of the last basic salary. Any shortfall in the pension fund required to meet the guaranteed pension amount will be covered from the central government budget. This can benefit about 8.7 million central and state government employees. These will be employees who have been registered in NPS since 2004.

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NPS is designed to ensure a stable income during retirement age. It provides a lump sum amount on reaching retirement and regular monthly income thereafter. It has the benefit of compounding returns. The advantage of this is that a long investment period can increase your income tremendously.

How to get pension of Rs 1 lakh?

To get a monthly pension of Rs 1 lakh, you should consider starting early. For example, if you start investing Rs 3,475 every month in NPS at the age of 18 and continue for 47 years, you can potentially get a pension of more than Rs 1,00,000 per month by the time you retire at the age of 65.

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Apart from this, you can customize your NPS investment portfolio. Investing 60% of your funds in equity and 40% in debt instruments can diversify your investments. This can give you a return of around 10 percent.

How is retirement fund invested?

If you are planning for long-term investment and want to retire after 30 years, then contributing Rs 15,000 every month to your NPS account can help you get a pension of Rs 1 lakh every month.

It is important to note that 60 per cent of the retirement fund is invested in annuity plans, which give a return of 6 per cent per annum. Those planning to retire in 20 years will have to contribute around Rs 32,000 every month. Assuming a 12 per cent return rate, this will help you build a similar retirement corpus in a short period of time.

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Many pension schemes are currently running to encourage financial security of senior citizens. Guaranteed pension is being offered in some. Let us know about these schemes in detail-

National Pension System (NPS) is a retirement savings and investment program launched by the Central Government. Under this, you have to invest yourself and citizens get security as their age increases. The investment made in this is based on safe and regulated market based returns. It is supervised by PFRDA. Any Indian citizen between the age of 60 to 65 years can also register in NPS. Also, he can remain a member till the age of 70 years.

By investing in NPS you can manage your old age. The benefits of investing in it are as follows – – Source of income in old age – Market based returns in long term – Expansion of security coverage in old age.

Monthly pension is also available under the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) launched for senior citizens. Senior citizens in the age group of 60-79 years falling in BPL category get a monthly stipend of Rs 300/-. When someone turns 80 years of age, the pension increases to Rs 500 per month. There is no need to make any investment for this pension scheme.

Atal Pension Yojana (APY) was started keeping in mind the future of the poor, the underprivileged and the workers working in the unorganized sector. There is a provision to get minimum monthly pension to the investor under APY. In this, the pension amount can range from Rs 1000 to Rs 5000 per month. Also, you can start investing in this between the age of 18 to 40 years. Under this, any citizen who is or has been a tax payer will not be eligible to participate in APY.

According to the Financial Services Department, ‘This scheme is operated through LIC. Under the scheme, customers get a guaranteed pension of 9% per annum on paying a lump sum amount. Any difference in the guaranteed returns generated by LIC on the fund is compensated by the Government of India through subsidy payments into the scheme. In the scheme, withdrawal of deposited amount is allowed after 15 years of purchasing the policy.

In the budget speech of 2014-15, the then Finance Minister proposed to restart the program for a short period from 15 August 2014 to 14 August 2015 for the benefit of citizens aged 60 years and above.

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Two-factor Aadhaar authentication implemented

Pension Fund Regulatory and Development Authority (PFRDA) had informed that it is going to increase its security features. Now two-factor authentication will be required to login to the NPS account. To login into the Central Record Keeping Agency (CRS) system, login can be done after two-factor authentication process. The regulator of the pension fund has also issued a circular regarding this.

Aadhaar based verification is necessary

PFRDA has issued a circular on this matter informing that now additional security features will be added to login to the CRA system. This rule will come into effect from April 1, 2024. After this, NPS account holders will be sent OTP along with user ID and password on the mobile number linked to Aadhaar.

Now users will be able to login to their CRA system only after entering this OTP. PFRDA has said in its issued circular that logging into CRA will be more secure with Aadhaar-based login authentication.

At present this is the system

At present, NPS account holders need only NPS ID and password to login to the CRA system. In such a situation, after adding the security feature of Aadhaar based verification, users will have to enter the ID password as well as Aadhaar based authentication i.e. OTP received on the mobile number linked to Aadhaar.

In this way you will now be able to login to your NPS account.

• For this, first of all visit the official website of NPS
• https://enps.nsdl.com/eNPS/NationalPensionSystem.html .
• Next click on Login with PRAIN/IPIN.
• After this a new window will open in front of you.
• Next enter your NPS ID and password.
• Enter the captcha given below.
• After this, OTP will be sent to the mobile number linked to your Aadhaar to complete the Aadhaar authentication process.
• Enter it here.
• You will be able to open your NPS account.

ITR-U Deadline: Taxpayers should pay attention! Do this work by 31st March, otherwise 200% payment will have to be made.

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National Pension System i.e. NPS is not only a good investment medium for retirement planning but it also proves helpful in saving income tax. Many people do not take full advantage of the tax benefits available under the National Pension System. Rather we would say that most of the people are not aware about it. If your employer contributes up to 10 percent of your basic salary and DA to the NPS corpus, then this amount will not come under the ambit of tax.

This money can be part of your total cost-to-company. This will reduce your tax liability significantly. You yourself can contribute up to 10 percent of your basic salary and DA to NPS. On this you can claim deduction under section 80CCD (1). Let us know in detail how NPS can help you in saving tax.

Tax benefits are available under these three sections

Let us tell you that apart from 10 percent contribution of base salary and DA under Section 80CCD (1), you can avail additional tax benefit of Rs 50,000 under Section 80CCD (1B). This is in addition to the 80C limit. But, it must be kept in mind that the deduction available under section 80CCD (1) comes under the total tax deduction limit of Rs 1.5 lakh under section 80C.

Apart from this, Section 80CCD (2) can help you a lot in tax-savings. For this, your employer will have to contribute up to 10 percent of your basic salary and DA to your NPS corpus. This limit of 10 percent is for people working in the private sector. For government employees this limit is 14 percent.

Benefit of Section 80CCD (2) in the new tax regime

It is important to know that the tax benefit available under section 80CCD (2) is available in both the new and old income tax regimes. If you are a private employee, you can ask your employer to contribute up to 10 percent of basic salary and DA to NPS. This money will be a part of your CTC, so there will be no additional burden on your employer. This can be understood with an example.

Suppose your basic salary and DA is Rs 50,000 every month. In such a situation, your employer can contribute Rs 5000 to your NPS every month. In this way he will contribute Rs 60,000 annually. This money will be taken out of your taxable salary.

These benefits will be available in the new regime

For information, let us tell you that in the new income tax regime, most of the deductions and exemptions are not available. But the benefit of deduction under section 80CCD (2) is available on contribution in NPS. The government has also given the benefit of standard deduction of Rs 50,000 in the new income tax regime from the financial year 2023-24. If you are employed then you can take advantage of this.

The post National Pension System: You can save a lot of tax by investing in NPS, understand the complete mathematics of investing. first appeared on Rightsofemployees.com.

If your employer contributes up to 10% of your basic salary and DA to the NPS corpus, then this amount will not come under the ambit of tax. This money can be part of your total cost-to-company (CTC). This will reduce your tax liability significantly.

You yourself can contribute up to 10 percent of your basic salary and DA to NPS. On this you can claim deduction under section 80CCD (1). Let us know in detail how NPS can help you in saving tax.

In addition to the 10% contribution of base salary and DA under Section 80CCD (1), you can avail an additional tax benefit of Rs 50,000 under Section 80CCD (1B). This is in addition to the 80C limit. But, it has to be kept in mind that the deduction available under section 80CCD (1) is subject to the total limit of Rs 1.5 lakh under section 80C.

Apart from this, Section 80CCD (2) can help you a lot in tax-savings. For this, your employer will have to contribute up to 10 percent of your basic salary and DA to your NPS corpus. This limit of 10 percent is for people working in the private sector. For government employees this limit is 14 percent.

The tax benefit available under section 80CCD(2) is available in both the new and old income tax regimes. If you are a private employee, you can ask your employer to contribute up to 10 percent of basic salary and DA to NPS. This money will be a part of your CTC, so there will be no additional burden on your employer.

This can be understood with an example. Suppose your basic salary and DA is Rs 50,000 every month. In such a situation, your employer can contribute Rs 5000 to your NPS every month. In this way he will contribute Rs 60,000 annually. This money will be taken out of your taxable salary.

Most of the deductions and exemptions are not available in the new income tax regime. But the benefit of deduction under section 80CCD (2) is available on contribution in NPS. The government has also given the benefit of standard deduction of Rs 50,000 in the new income tax regime from the financial year 2023-24. If you are employed then you can avail this benefit.

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PPF Interest Rate: If you invest money through PPF account (PPF) or Sukanya Samriddhi Yojana (SSY) or National Pension System (NPS), then this news is useful for you. Actually, under small savings schemes, you have to deposit a minimum amount in your account every financial year.

To keep the account active, it is necessary to maintain minimum balance. If the account holder fails to deposit the minimum amount every year, the account may be frozen. Apart from this, penalty may also be imposed on the account holder.

The last date for depositing the minimum amount in PPF, NPS and Sukanya Samriddhi account for the current financial year is March 31, 2024. In the budget of 2023, the new tax regime has been made more attractive by the government.

Under the new tax regime from April 1, 2023, the income tax slab was changed and the basic exemption limit was increased from Rs 2.5 lakh to Rs 3 lakh in a financial year. Apart from this, standard deduction is also available in the new tax regime. Under this, you do not have to pay any tax on income up to Rs 7 lakh.

Fine may be imposed for not depositing the minimum amount

In such a situation, it is possible that you may have selected the new tax regime to pay your tax for the current financial year 2023-24. In such a situation, if you were investing in small savings schemes along with paying tax under the old tax regime till the last financial year, then like every year,

you will get the savings like PPF, Sukanya Samriddhi Yojana (SSY) and NPS. Will have to invest in the scheme. Even if you select the new tax regime, you will not get the benefit of tax exemption on investments in these savings schemes. In fact, fine can also be imposed for not depositing the minimum amount in all these accounts.

How much money is necessary to deposit in PPF?

According to PPF Rules 2019, it is necessary to deposit at least Rs 500 in the PPF account every financial year. If the minimum amount is not deposited then the PPF account will become inactive. Loan and withdrawal facilities are not available when the PPF account is inactive.

You can revive an inactive account before maturity. A fee of Rs 50 is charged every year in case of account default. Apart from the default fee, the depositor also has to deposit a minimum amount of Rs 500 every year. You are required to deposit a minimum amount of Rs 500 every year in this account.

Sukanya Samriddhi Yojana

This is also a tax saving investment option for those people who want to save for their girl child. According to the rules of SSY scheme, account holders are required to deposit a minimum of Rs 250 every financial year. If minimum Rs 250 is not deposited in the account in a financial year then Sukanya account is considered as default account. The rules of the scheme allow any default account to be revived at any time before maturity. To revive the account, one has to pay Rs 50 for every default year.

NPS

Some taxpayers open an NPS account to save tax by investing an additional Rs 50,000 under Section 80CCD(1B) of the Income Tax Act. Under Section 80C, investment of Rs 50,000 is allowed more than the limit of Rs 1.5 lakh. According to the rules of NPS, it is necessary for any person to deposit at least Rs 1,000 every financial year. But if your account is inactive then you can activate it by depositing Rs 500. But here it is important to keep in mind that you will have to deposit at least Rs 1000 in a financial year.

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This circular states that NPS account holders can withdraw up to 25% of the amount excluding employer contribution from the individual pension account. This facility will be available to account holders from 1st February. In such a situation, know here under which conditions partial withdrawal can be made from NPS, what are the necessary conditions and process.

Know in which situations you can withdraw money

• If you need money for your children’s higher education, you can make partial withdrawal from NPS.
• Account holders can also make partial withdrawal up to 25 percent for the marriage of children.
• Partial withdrawal can also be made for buying a house, home loan repayment etc., but this rule has been slightly changed. If you already have a house in your name or your spouse’s name, you will not be able to avail this facility to buy another house.
• Money can be withdrawn from the NPS account for hospital stay and treatment expenses during serious illnesses.
• The amount can be withdrawn in case of medically incapacitation or disability due to any accident.
• In case of serious illness, the amount can be withdrawn for hospitalization or treatment.
• You can withdraw money for starting any kind of business, startup, skill development or any course.

Requirements for partial withdrawal

• NPS subscribers must be a member for at least three years from the joining date.
• More than one-fourth of the subscriber’s contribution cannot be withdrawn from the pension account.
• Withdrawals can be made a maximum of 3 times during the entire subscription tenure. It is necessary to have a gap of 5-5 years during all the three partial withdrawals. This withdrawal will not exceed 25 percent of your entire contribution. 

What is the withdrawal process?

• To withdraw the amount of 25 percent or less under NPS, one will have to first apply to any government nodal agency of NPS.
• Along with this application, you will have to give a self-declaration as to the purpose for which you are withdrawing the amount.
• After this the application will have to be submitted to the Central Recordkeeping Agency (CRA).
• Then the agency will process the application after verification.
• If the subscriber is ill, a family member or nominee can make this request in his place.  

Let us tell you that the Central Government had launched the National Pension Scheme on January 1, 2004. Initially, it was only for government employees, but after 2009, private sector employees were also given the facility to invest in this scheme. According to PFRDA, after the age of 60 years (retirement), there is a facility to withdraw 60 percent of the total maturity amount from NPS in lump sum, the remaining 40 percent of the maturity amount has to be invested in an annuity plan, from which pension is received. 

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Pension fund regulator PFRDA has sought “parity” with the Employees’ Provident Fund Office (EPFO) on the taxation front for contributions by employers. It is expected that some announcements in this regard are expected to be made in the interim budget.

Finance Minister Nirmala Sitharaman may present the interim budget on 1 February. This will be his sixth budget.

This is the hope regarding NPS

At present there is a disparity in the contribution of employees and employers. In NPS, 10 percent tax exemption is given on basic salary and dearness allowance. Whereas, in case of EPFO it is 12 percent.

Deloitte As per budget expectations, to promote long-term savings through NPS and reduce the tax burden for senior citizens above 75 years of age, the annuity portion of NPS has been made tax free for holders from the age of 75 years onwards. should go.

Apart from this NPS can be included with interest and pension. This will ensure that senior citizens above 75 years of age do not need to file returns if they have NPS income. Currently, lump sum withdrawal of 60 percent is tax free.

There is also a demand to provide tax benefits for NPS contributions under the new tax regime.

Till now, an individual’s contribution up to Rs 50,000 to NPS under Section 80CCD (1B) is deductible under the old tax regime, but it is not under the new tax regime.

Committee formed for government employees

With regard to government employees, the government last year constituted a committee under Finance Secretary TV Somanathan to review the pension system and suggest measures for its betterment. The panel report is still awaited.

This committee will suggest whether any changes are necessary in the existing framework and structure of the National Pension System (NPS) applicable to government employees. This panel will suggest measures

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According to an ET report, the Pension Fund Regulatory and Development Authority (PFRDA) has proposed to provide the option of face-wise withdrawal of lump sum amount through the Systematic Lumpsum Withdrawal (SLW) facility. But you will get SLW facility only on the withdrawable lump sum maturity amount. According to the rules, after retirement or after the age of 60 years, you can withdraw 60 percent of the maturity amount from NPS in lump sum, while the remaining 40 percent amount has to be used to purchase an annuity plan.

PFRDA announced this through a circular on October 27, 2023. According to the proposed rule, through SLW you can withdraw up to 60% of your pension fund on monthly, quarterly, half-yearly or annually basis up to the age of 75 years. There has been no change in the rules regarding annuity.

What are the existing rules

As per the current rules, NPS subscribers can defer both lump sum withdrawal and annuity or any one component after retirement till the age of 75 years. Whereas 60 per cent of the maturity amount can be withdrawn either in lump sum or in multiple installments on an annual basis. But if withdrawal is done on annual basis then you will have to apply for it every year.

What is SLW?

This is similar to a systematic withdrawal plan like a mutual fund. Central record keeping agency CRA has started this facility for NPS subscribers. In this facility, the amount can be withdrawn systematically after retirement. Those who have taken an NPS plan have the option to withdraw a fixed amount systematically at regular intervals after retirement.

NPS subscribers will have the option to choose the systematic withdrawal option for 60 per cent of the lump sum. The remaining 40 percent amount will be used for annuity purchase. According to the Chairman of PFRDA, the annuity purchase rule will remain as it is.

Benefits of SLW

1. Benefit of cash flow at regular intervals.
2. Regular cash flow will increase monthly income.
3. Means of wealth creation. Returns will continue to be credited on the remaining deposited amount.
4. Tax benefits can be availed on all SLW withdrawals

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Penny drop verification became necessary

Pension Fund Regulatory and Development Authority has made penny drop verification mandatory for withdrawing pension money (NPS New Rule). So that the money can be transferred on time. This new rule will reveal the actual status of the accounts.

Currently, the active and real status of the accounts is checked by the central agencies to withdraw money. Also, the name is matched in PRAN (Permanent Retirement Account Number), bank account or documents. Which takes time.

What is Penny Drop?

In this new rule, to check the validity of the accounts, the name is matched by depositing a small amount in the beneficiary’s bank account on the basis of penny drop process. In which there is no need to match other documents. Also, by doing this, time will be saved and transactions will also happen faster.

This new rule is for all pension related withdrawals

This rule will be applicable for withdrawal from all pension deposits like Atal Pension Yojana, Pension Pension System, NPS Lite. Also, the same procedure will be followed in case of change of details in the bank accounts of the pension taking customers. So that there is no problem in verification.

Reasons for verification failure

: · Invalid account type or account number,

· Required details not updated,

· Inactive or closed account,

· Name or other details incorrect,

· Incorrect or invalid IFSC code.

What happens if verification fails?

If the pensioner’s penny drop verification fails, then any applications like change in details, withdrawal of funds from NPS will not be accepted. For this you will have to submit all the correct information again.

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The Pension Fund Regulatory and Development Authority (PFRDA) has made full preparations to bring these changes to the ground.

PFRDA had made it clear in the circular issued on October 27, 2023 that by making changes in Rule 3 and Rule 4, it is going to start Systematic Lump Sum Withdrawal (SLW) for withdrawal of money after the stipulated time. Under this, NPS account holders will be able to withdraw up to 60 percent of the amount deposited in the pension fund. In SLW, you will have the freedom to withdraw money on monthly, quarterly, half-yearly or yearly basis till the age of 75 years as per your convenience.

What is SLW?

If we want to understand it in simple words, then it is similar to the Systematic Withdrawal Plan (SWP) available under mutual funds. People coming under the purview of NPS will be able to withdraw money within the time interval of their choice. Under this, whatever option you choose from your 40 percent fund after reaching the age of 60, the retired employee will continue to be paid continuously till the age of 75 years.

You will be able to withdraw the remaining 60 percent of the fund together or systematically under SLW. With the help of SLW, pensioners will continue to receive money. This will ensure that they have a fixed income after retirement and will not be burdened with expenses. In this process, you will get the opportunity to choose the option once.

Who will benefit from SLW?

Those who want a fixed income even after retirement will benefit greatly from this scheme. This benefit can be availed at the time of retirement.

How does NPS work?

NPS is a program run by the Government of India, which operates under the supervision of PFRDA. NPS invests money in many places including equities, government securities and corporate bonds. In this way NPS keeps strengthening its retirement fund.

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In which investors get the benefit of lump sum amount and monthly pension after retirement. If you have also invested in this scheme, then how much money has been deposited in your name (NPS Balance Check) can be known sitting at home.

There are three ways to check the balance of NPS accounts.

1. Via SMS

Account holders of National Pension System can also do balance check (NPS Balance Check) through SMS. For this you will need the registered mobile number. Give a miss call to 9212993399 from the registered mobile number linked to the NPS account. After this a message will come to you. In which all the information of your NPS account will be present.

1. Throughc

• You can also find the amount deposited in NPS account by downloading the UMANG app in your mobile.
• Download the Umang app on your phone.
• Now login and select NPS.
• – After this you will have to choose the option of current holding.
• – Now enter your Permanent Retirement Account Number and Password.
• After submitting, the account balance will appear in front of you.

1. NSDLthrough the portal of

• First of all you have to go to the portal of NSDL.
• As soon as you log in, enter your Permanent Retirement Account number and password.
• After entering the captcha code, select the option of holding statement.
• – Now click on the option of transaction statement.
• – After this, the amount deposited in your account will appear on the screen.

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In old age, they have to depend on their husband or children for their small needs. But women can avail the benefit of monthly pension after the age of 60 years. The National Pension System of the Government of India will help you in this.

About the plan

NPS is considered a better option for safe investment and guaranteed returns. Through the scheme, the wife can live a self-reliant life even in the absence of her husband. It also gives good returns. Women can transfer their accounts from one city to another. Not only this, the maturity amount and returns are tax free. Women between 18 years to 60 years of age can avail its benefits.

This is the calculation

The pension amount depends on investment. Under the scheme, if women start investing at the age of 25 years. And deposits Rs 15,000 every month. So by the age of 60, a fund of about Rs 1.12 crore is created, which also includes 10% annual return. At the time of maturity, you will get a lump sum pension of Rs 45 lakh and a pension of up to Rs 45 thousand every month.

(Disclaimer: The purpose of this article is to share general information only. rightsofempoyees does not advise investing in any scheme.)

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National Pension System: Everyone does future planning. Everyone also searches for their retirement plan. But, often people do not know the right tool. If you are worried about your retirement then your wife can solve this problem. If you open this special account in the name of your wife, then the problem will be solved.

National Pension System or National Pension Scheme (NPS) is one such scheme, in which not only you but your wife can also help in making money. New Pension System (NPS) account can be opened in the name of the wife. NPS account will give a lump sum amount to the wife at the age of 60 years. Apart from this, you will get the benefit of pension every month.

This will be the regular income of the wife. The biggest benefit of NPS Account is that you can decide yourself how much pension you want every month. Due to this, there will be no tension of money at the age of 60.

Open NPS account in the name of wife

New Pension System (National Pension Scheme) account can be opened in the name of the wife. As per the convenience, the option of depositing the money every month or annually is available. An NPS account can be opened in the name of the wife even with Rs 1,000. NPS account matures at the age of 60 years. Under the new rules, if you want, keep running the NPS account till the age of the wife is 65 years.

But, how to make money from NPS?

Suppose your wife’s age is 30 years now and you deposit Rs 5000 in NPS account every month. Your annual investment will be 60 thousand rupees. Keep investing for 30 years. Overall your investment will be Rs 18 lakh. But, money will be made now. At the time of retirement, you will have a huge fund of Rs 1,76,49,569 ready. In this, Rs 1,05,89,741 will be available only from interest. Here we have kept the average interest at 12 per cent. Now compounding works. The investment may be 18 lakhs but compounding has taken your money above 1.5 crore rupees (Rs 1,76,49,569).

Now understand how the pension formula will be decided?

This is the biggest benefit of NPS Account that you can decide yourself how much pension you want. When your wife’s account matures at the age of 60, you will get Rs 1,05,89,741 in lump sum. This is the same money which is made from interest. Invest the remaining 70,59,828 in annuity plans. We have kept the annuity as minimum 40% only. The annual annuity rate is kept at 8 percent.

₹ 5000 monthly investment will create a fund of ₹ 1.76 crore

How much lump sum amount will be received and how much pension? We have calculated with the NPS calculator of HDFC Pension.

– Age – 30 years 
– Total investment period – 30 years 
– Monthly contribution – Rs 5,000 
– Estimated return on investment – 12 per cent 
– Total pension fund – Rs 1,76,49,569 (at maturity)
– Annuity plan of Rs 70,59,828 (40%)
– Estimated Annuity Rate 8%
– Monthly Pension – ₹ 47,066

Central government runs the scheme

NPS is the Social Security Scheme of the Central Government. The money you invest in this scheme is managed by professional fund managers. The central government gives this responsibility to these professional fund managers. In such a situation, your investment in NPS remains completely safe. However, the money you invest under this scheme does not guarantee returns. According to financial planners, NPS has given an average annual return of 10 to 12 per cent since its inception.

Note: Here the calculation of NPS has been done on a general basis. Your total fund will be decided only by your investment and the returns you get. Before investing, take the advice of a financial advisor.

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The Pension Fund Regulatory and Development Authority (PFRDA) has issued a notification on 27 July 2023 to ease the rules for exiting the NPS i.e. National Pension Scheme. This will benefit crores of subscribers of NPS. It has been told in the issued notification that now NPS subscribers can choose any annual scheme by exiting the pension fund. The great thing is that no fee will be charged from the subscribers for this.

If someone wants to leave this pension scheme and exit, then he can easily do so. PFRDA has further simplified the rules to facilitate the people. PFRDA has ordered the nodal officers of Government, POP and National Pension System Trust to help NPS subscribers choose the scheme according to their needs so that they do not face any kind of trouble further.

No fee will be charged

PFRDA has said that customers can choose any kind of annual service and for that they will not have to pay any charge. The regulator has said that the subscribers are already paying tax to the government, so no additional charge will be taken from them. Insurance companies have been instructed that they can only take the premium amount from the subscriber. Apart from this, they should not be pressurized for any other kind of fee.

Rules for exit from NPS

According to the rules of PFRDA, if the amount deposited by the subscriber in NPS and interest in total is less than Rs 5 lakh, then he can withdraw the entire amount at once. If this is exceeded, 40 percent of the amount will be kept for pension and 60 percent of the amount can be withdrawn together. 40% of the amount is used to buy a pension plan. If the subscriber wants to buy a pension plan before the age of 60 years, then he will have to use at least 80 percent of the corpus.

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The Pension Fund Regulatory and Development Authority (PFRDA) has given great relief to crores of subscribers of the National Pension System. PFRDA has issued a notification on July 27, 2023, issuing a clarification on the rules for exiting the pension scheme. According to this notification, NPS subscribers can now select any annuity plan as soon as they exit the pension fund. This choice will be according to the need of the subscriber. In such a situation, they will not be charged any kind of fee for this work.

Rules for exiting pension have been simplified

PFRDA has tried to make it easier for the beneficiaries of the National Pension System to exit the scheme. If a subscriber wants to exit this scheme after retirement, he can easily take an exit from it. In order to give maximum information about the exit rules of NPS, PFRDA has ordered the nodal officers of Government, POPs and National Pension System Trust to help NPS customers choose the scheme according to their needs. With this, the beneficiaries will not have to face any kind of problem in future.

Will not have to pay the charge

Apart from simplifying the exit rules of NPS, PFRDA has also informed that the subscribers will not have to pay any additional charges for opting for any type of annuity service. Along with this, PFRDA has also made it clear that Bina Company can only charge premium from NPS subscribers as NPS subscribers already deposit the fee as tax to the government. In such a situation, there should be no pressure on them to charge any kind of fee for other services. Along with this, it will be the responsibility of the Compliance Officer to complete all the tasks related to the Annuity Service Provider. Significantly, PFRDA is trying to make the subscribers more empowered by providing maximum facilities to the subscribers.

What is the exit rule from NPS?

As per PFRDA rules, NPS subscribers can use 40% of their entire corpus to buy annuity at the time of maturity. On the other hand, the remaining 60 percent can be withdrawn in one go, but if this corpus is less than Rs 5 lakh, then you can withdraw the entire amount at the time of maturity. On the other hand, if you want to buy a pension plan before 60 years, then you are required to use at least 80% of the NPS corpus.

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After retirement, apart from getting a lump sum amount under this, the benefit of pension is also available every month. Through the website of NPS, you can invest in it and here the returns and benefits can be easily understood. NPS calculator is also available here. If you want to invest, then you can understand the return on investment as per the requirement.

Under the National Pension System, more benefits can be availed by investing a very small amount. Here’s how you can get a monthly pension of Rs 57,000 by saving Rs 100 a day. Let’s understand the calculation

Pension on investment of 1500 per month at the age of 25

If you start investing Rs 1500 i.e. Rs 50 per day in NPS at the age of 25, then by the age of 60 the total corpus will be Rs 57,42,416. However, for this the annual interest should be 10 percent. You can invest even till the age of 75. At the time of exit from the scheme, investors have the option to buy an annuity plan with a corpus of up to 100 per cent.

If 100% annuity is purchased with this copper, the customer can avail a monthly pension of Rs 28,712. If only 40% of the annuity is purchased, then the monthly pension will be Rs 11,485 and you will get a lump sum amount of Rs 34 lakh, which you can withdraw.

How much pension will be received on Rs 100 per day

If you start investing Rs 3000 every month i.e. Rs 100 per day from the age of 25, then according to the NPS calculator, after 60 Rs 1,14,84,831 will be accumulated. If 100% annuity is purchased with this amount, then the total monthly pension will be Rs 57,412 and if only 40% annuity is purchased, then only Rs 22,970 will be given as monthly pension, but after retirement the lump sum amount will be Rs 68 lakh.

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The Modi government has announced the constitution of a four-member committee under the chairmanship of the Finance Secretary to improve the National Pension System. In such a situation, it is being speculated that the Modi government can also give green signal to the formation of the Eighth Pay Commission. The 8th Pay Commission is to be constituted in 2023 itself. The Pay Commission was constituted only in 2013 when the recommendations of the Seventh Pay Commission were implemented in 2016. The recommendations of the new Pay Commission are implemented after every 10 years.

Last year in August 2022, when the question was asked to the Finance Minister whether the Modi government would also give a green signal to the formation of the Eighth Pay Commission. The Pay Commission is to be constituted in 2023 itself. Then, while answering this question, Minister of State for Finance Pankaj Chaudhary had said that there is no proposal before the government to set up the 8th Pay Commission. The Minister of State for Finance had given this answer in writing to the question asked during the Question Hour.

Although it is not that easy either. Because the National Pension System, about which the Modi government was not getting confused, during the passage of the Finance Bill in the Lok Sabha, Finance Minister Nirmala Sitharaman announced that it has been decided to further improve the National Pension System for government employees and for that, she has decided to form a committee under the chairmanship of the Finance Secretary. This decision of the Finance Minister was surprising.

The Lok Sabha elections to be held in 2024 are just a year away and the vote of the government employees is very important for the ruling party, in such a situation, a committee has also been formed to improve the National Pension System. In such a situation, it is believed that the Modi government can also give a green signal to the formation of the Eighth Pay Commission. Before the Lok Sabha elections, the government cannot buy the displeasure of the government employees by not constituting the Pay Commission. Opposition parties can make it a big election issue like NPS.

There was already a tussle between the Center and the states ruled by the opposition parties regarding the National Pension Scheme. The old pension scheme was reinstated in Congress ruled states like Himachal Pradesh, Rajasthan, Chhattisgarh. After which the government has constituted a committee to review the NPS. That’s why it is being speculated that the government can also constitute the Eighth Pay Commission.

Let us tell you that since 1947 many Pay Commissions have been formed. The government constitutes a new pay commission every 10 years. On the basis of whose recommendations the salary of central employees and pension of pensioners are increased. The Seventh Pay Commission was constituted by the UPA government on 24 February 2014. In 2006 and 2016, the Sixth and Seventh Pay Commission had recommended a big hike in the salaries of central employees and the governments, accepting it, had also increased the salaries of government employees.

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Now let us see what are the tax benefits on investing in NPS:-

Tax benefit on investment in Tier-I account under old tax regime

-Tax benefit u/s 80CCD(1) u/s 80CCD(1) up to a maximum of Rs 1.5 lakh in Tier-I account in NPS or 10% of annual salary (basic salary plus DA) for salaried/salaried individuals and non-salaried/self-employed For a maximum of 20% of the gross total income, whichever is less, the benefit of tax exemption ie deduction is available on the investment. For example, if your salary (basic salary plus DA) is 20 lakhs and you contribute 2 lakhs to NPS. But you can get exemption under 80CCD(1) only up to a maximum annual investment of Rs 1.5 lakh.

One more thing 80C (Life Insurance, PPF, NSC, Senior Citizen Savings Scheme, SSY, Bank / Post Office FD, NPS, ULIP, Term Plan, ELSS, Repayment of principal amount of home loan, tuition fees of two children …..etc) , 80CCC (Annuity/Pension Plan) and 80CCD(1) tax exemption can be availed only on annual investment up to a maximum of Rs 1.5 Lakhs.

Tax benefit under 80CCD (1b)

Under 80CCD (1b), investment of Rs 50,000 in NPS Tier-I account is tax exempt in addition to the limit / limit of 80CCD (1). Overall, you can get tax exemption on investment up to a maximum of Rs 2 lakh in NPS in a financial year. Even if you have invested up to a limit of Rs 1.5 lakh annually under 80C and 80CCC, you can still get a separate tax exemption on investment of Rs 50,000 in NPS under 80CCD (1b).

Tax benefit under 80CCD (2)

Under 80CCD (2), there is also a provision for tax exemption on the contribution made by the employer to the NPS for the employee. But the tax exemption will be available only on the contribution of 10 percent of basic salary plus DA for private employees and up to 14 percent of basic salary plus DA for government employees. Deduction under 80CCD(2) is available only to salaried individuals.

Tax benefit on investment in Tier-II account

For central government employees, a provision has been made for tax exemption under 80C on the maximum investment amount of Rs 1.5 lakh in Tier-II account. Provided the lock-in period of the investment is at least 3 years.

Tax benefits under the new tax regime

In the new tax regime, there is a provision of tax benefit under 80CCD(2) only. This means deduction is available on the contribution made by the employer to the NPS for the employee. But this benefit will be available to the private employee only on the amount contributed by the employer up to 10% of his basic salary. While for government employees, on the contribution of 14% of the basic salary plus DA from the employer.

Tax treatment on NPS

NPS is also in EEE ie exempt-exempt-exempt category like PPF (PPF), EPF (EPF) and SSY (SSY). Means where there is no tax on deposit, no withdrawal and no interest received. Means there is tax exemption on maximum 60% withdrawal. In NPS, only 60% of the total maturity amount is allowed to be withdrawn. The remaining 40% of the maturity amount has to be invested in an annuity/pension plan.

Tax on annuity

Although the amount invested in annuity is tax-free, there is no tax exemption on regular income/pension received as returns under annuity. This means that the regular amount received as a return is added to the annual income of the investor and the taxpayer has to pay tax according to the tax slab.

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There is big news for pensioners. If you are also taking advantage of NPS, then now it has been decided by the government to change its rules. National Pension System is a kind of investment plan. Under this scheme, the account holders get the benefit of lump sum amount and pension every month after retirement.

PFRDA gave information

Let us tell you that there is no provision for withdrawal before retirement in NPS, but you can withdraw money under certain rules. Information about this has been given by PFRDA. PFRDA has changed some new rules regarding partial withdrawal from NPS this year.
Nodal officer will have to apply
After January 1, 2023, for partial withdrawal, you will have to apply to the concerned nodal officer. Apart from this, you can apply online also. Only NPS account holders, Central, State and Central Autonomous Bodies are getting the benefit of this facility.

What did the chairman of PFRDA say?

Giving information, PFRDA Chairman Deepak Mohanty has told that many people have requested why we cannot continue with the fund. Why should I take annuity when my money is giving me good returns? I would like to withdraw my money on monthly or quarterly basis. Right now we cannot provide such an option. In such a situation, we are considering such a product.

At present, National Pension Scheme (NPS) members withdraw up to 60 per cent of the retirement corpus as a lump sum after the age of 60, while the remaining 40 per cent of the corpus is compulsorily ‘annuity’ (fixed amount paid every year) goes in. Whereas a systematic withdrawal plan will allow NPS members to opt for periodic withdrawals till the age of 75 years. Subscribers can opt for monthly, quarterly, half-yearly and yearly withdrawals.

Withdrawal process will be completed in just 2 days

According to the circular issued by PFRDA, the time limit for withdrawal from NPS has been reduced from T4 to T2. That is, now instead of 4 days, the process of withdrawal will be completed in just 2 days.

What is the specialty of this scheme-

>> If you go to withdraw money from NPS account, then you can withdraw only three times.
>> Let us tell you that you can withdraw only 25 percent of the total contribution.
>> Partial withdrawal can be made from National Pension System for higher education of children, marriage of children, purchase and construction of flat, serious illness.

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According to this plan of PFRDA, instead of the existing system of one-time withdrawal, permission will be given to withdraw 60 percent of the deposit amount in a systematic manner. PFRDA wants to improve the system of withdrawal of money for more and more people under this scheme.

40% amount for investment in annuity

As per the proposal, NPS subscribers will be allowed to systematically withdraw 60 per cent of their corpus after retirement till the age of 75 years, while 40 per cent will have to be invested in annuity, instead of the current system of lump sum withdrawal.

The rule will apply to these people

PFRDA Chairperson Deepak Mohanty said that we are planning to start Systematic Withdrawal Scheme from the second half of this year. Any number of times the amount can be decided by the customer and can be withdrawn in lump sum or on monthly, quarterly, half-yearly or yearly basis. This applies to people in the age group of 60 to 75. He said that the new facility could be launched during the last quarter of the calendar year.

How many people have joined NPS so far During the current financial year, 1.3 million new subscribers of NPS are expected to be added from the non-government sector, more than 1 million users in the previous financial year. Last year NPS had 12 million subscribers and this year it is expected to reach 13 million. At the same time, 54 million people have joined under the Atal Pension Yojana.

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If your account has become active under NPS i.e. National Pension System, then it can be reactivated again. National Pension System is a retirement saving scheme. If you want to take advantage of the National Pension System, then the closed account can be started again. Know how you can do this.

How to unfreeze?

To unfreeze the account, the customer has to pay the total minimum amount for the period of freeze. Minimum contribution for the year in which the account is reactivated along with a penalty of Rs.100/- has to be paid. To unfreeze an account, the customer has to visit the Point of Presence (POP) and deposit the required amount.

These documents will be required –

• PAN card,
• identity card,
• Address proof,
• passport size photos,
• reactivation form,
• You can also get this form from the official NPS website.

You have to fill the form properly with all the required documents. Sign and submit the form with all the information like PRAN, reason for activation and personal details. You will also have to submit KYC documents and passport size photographs along with the form. When the complete form is filled, you can submit the form by going to the POP-SP office. You will have to pay a nominal fee to reactivate the NPS account. Information regarding fee will be available from POP-SP. When you make the payment, take the receipt for it.

Minimum contribution required

The minimum contribution at the time of account opening is Rs.500 for Tier I and Rs.1000 for Tier II. The minimum contribution amount is Rs.500 for Tier I and Rs.250 for Tier II. 6000 for Tier I and the minimum annual contribution is Rs. 2000 for Tier II is Rs.

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The pension regulator (PFRDA) has told the members of the National Pension System (NPS) that if a member’s PAN and Aadhaar are not linked within the stipulated time frame, then the transaction in his NPS account will be banned (NPS Restriction).

The Pension Regulator (PFRDA) said in a notification issued on 2 May 2023 that it is mandatory for all NPS members to link their PAN with Aadhaar. A notification has also been issued regarding this on March 23, 2023. PAN fulfills the key identification number and Know Your Customer (KYC) requirements for NPS accounts. Therefore, it is mandatory to link it, so that continuous and smooth transactions continue from the NPS account.

According to the circular of the Central Board of Direct Taxes (CBDT), if the PAN given to a person is not linked to Aadhaar by June 30, 2023, it will become inactive. If this happens, penalty and fine will be applicable under the Income Tax Act 1961. At present, late fee of Rs 1,000 has to be paid for linking PAN-Aadhaar. Fee paid under Income Tax Act section 234H will not be refunded.

How to update Aadhaar in NPS account

Aadhaar card is used as KYC details in NPS account. NPS members will have to verify all the details of Aadhaar linked with NPS before linking PAN Aadhaar. If there is any change in the Aadhaar details, then there may be difficulty in getting the benefit of PAN Aadhaar link to the NPS members. Know here the process of updating Aadhaar linked in NPS account online.

1. NPS Subscriber First of all login to your NPS account through https://cra-nsdl.com/CRA/.
2. After this, click on the member menu ‘Update Aadhaar / Address Details’.
3. Members now click on ‘Update Details’ under the new menu that opens.
4. The applicant then selects the option ‘Add/Update Aadhaar Number’.
5. Now enter your Aadhaar number and click on ‘Generate OTP’.
6. Member should enter the OTP received from UIDAI on his registered mobile number.
7. After this, after authentication through OTP, Aadhaar will be linked to your PRAN.
8. The name entered for PRAN of the NPS member should match with the registered name.
9. After this, you will get the message that Aadhaar seeding is successful for your Permanent Retirement Account Number (PRAN).

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There is no provision for withdrawal before retirement in NPS, but under certain conditions the amount can be withdrawn from it. Pension Fund Regulatory and Development Authority has changed some new rules this year regarding partial withdrawal from NPS.

NPS account holders, employees of the Center, State and Central Autonomous Bodies, will have to apply for partial withdrawal from January 1, 2023, to the concerned nodal officer.

Online withdrawal is allowed for partial withdrawal. On the other hand, NPS members of private sector will continue to get online facility of partial withdrawal.

According to a circular issued by PFRDA, the time limit for withdrawal from NPS has been reduced from T4 to T2. This means that now instead of 4 days, the withdrawal process will be completed in just 2 days.

If you go to withdraw money from NPS account, then you can withdraw only three times. Also, only 25 percent of the total contribution can be withdrawn.

Withdrawal from NPS Partial withdrawal can be made for higher education of children, marriage of children, purchase and construction of flat, serious illness etc.

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PFRDA, a regulatory body for the overall supervision and regulation of pensions in India, said, “In the interest of the subscribers and to benefit them with timely payment of annuity income, the uploading of documents shall be mandatory from April 1, 2023.”

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What are the new changes for NPS subscribers?

PFRDA has asked NPS subscribers to upload these documents. For parallel processing of withdrawal and annuity, certain withdrawal and KYC documents need to be uploaded. The list of those documents are:

• NPS Withdrawal / Exit Form
• Proof of identity and address as mentioned in the withdrawal form
• proof of your bank account
• Copy of Permanent Retirement Account Number (PRAN) Card

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If your monthly contribution is Rs 3,000 and you are 34 years old, you still have 26 years to make pension account payments. Considering an estimated 10% annual ROI or rate of interest. With a total principal investment of Rs 9.36 lakh in NPS, you will get Rs 44.35 lakh on maturity as per NPS calculation.

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In the emergency before retirement, up to 60 percent of the amount can be withdrawn from the amount deposited in this fund. If an employee does not want to invest further in this scheme, then he can easily exit from it.

If you want to exit from NPS, then you get 3 different options for this. Normally exit takes place on completion of 60 years of age. The second option allows you to exit on your own before the completion of 60 years and the third option allows you to exit in case of sudden death of an account holder.

What are the exit rules from NPS?

After retirement, till the age of 75 years, the subscriber can choose lump sum or annual withdrawal ie pension option to exit NPS or can also postpone both. After 75 years, they have to exit from this scheme. However, its default option allows annual withdrawal of a minimum of 40 percent of the deposit amount and one-time withdrawal of the remaining 60 percent. At the same time, the customer also has the option of annual withdrawal of the entire amount.

How can I exit online?

You get both offline and online options to exit from NPS. To exit online, you can process your request through OTP or e-sign. According to PFRDA, in the online process, customers will be able to log in to the Central Record Keeping Agency (CRA) system and submit an exit request. Here they have to submit the details related to the exit.

Charges will have to be paid for processing the request

In this, customers can choose the option of lump sum or annual withdrawal. For this, the customer has to provide details of fund allocation, Annuity Service Provider (ASP), Annuity Scheme etc. Along with this, KYC and other documents will have to be uploaded.

After this POP also verifies the customer bank account number and uploaded documents with the help of ‘Instant Bank Account Verification’. To process this request, the customer also has to pay its charges. These charges are 0.125 percent of the total fund, which can be a minimum of Rs 125 and a maximum of Rs 500.

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NPS scheme does not allow pension shortage in old age. Although some of its charges also, about which you should know. Let us know what are the charges you have to pay for NPS service.

• On registering for the first time, you will have to pay a charge of Rs 200 to Rs 400.
• 0.50% of the contribution for initial contribution and final contribution, with a minimum of Rs.30 and a maximum of Rs.25,000
• e-NPS 0.20% of contribution for continuous contribution, minimum Rs 15 and maximum Rs 10000 is applicable for all NPS accounts.
• Rs 30 is charged for all non-financial transactions

Persistence fee 

For annual contribution between Rs 1000 to Rs 2999, a persistence fee of Rs 50 is charged every year and the mode of deduction will be through cancellation of units. Rs 75 will be charged for amount between Rs 3000 to Rs 6000 and Rs 100 for more than Rs 6000. The processing fee for withdrawals and exits will be 0.125% of the corpus or minimum of Rs.125 and maximum of Rs.500.

How many types of NPS accounts are there 

Tier I and Tier II are two types of accounts in NPS. Tier I is an individual pension account, which is a default pension account and tax free facility is provided on it. Whereas Tier II is an alternative investment account, in which you must have a Tier 1 account before investing. Tier 2 is not a pension plan. You can invest as much money as you want in this.

Tax rules under NPS 

NPS contribution is exempt under section 80 CCD deduction. Whereas, under 80CCD 1(B), a deduction of Rs 50,000 can be made. This deduction can be done under NPS Tier 1 account.

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The Pension Fund Regulator says that uploading these documents will ensure timely annual income payment. Therefore, customers investing in NPS scheme will have to upload some important documents.

As per the PFRDA circular, the same process of exit and annuity requires uploading of certain withdrawal and KYC documents. The documents that you need to upload mainly include these documents.

These documents have to be uploaded

Withdrawal / Exit Form from NPS
Proof of identity and address as mentioned in the withdrawal form.
proof of your bank account
Photocopy of PRAN Card

Explain that whether you have opted for Government NPS scheme or Corporate NPS scheme, you have to follow these steps to exit NPS.

1. You need to login to the CRA system to initiate an online exit request.
2. Once you start the application, you will see relevant information regarding e-Sign/OTP authentication, Nodal Office/POP authority etc.
3. Details like your bank details, address, nominee details etc. are automatically populated in the NPS withdrawal form after you initiate the request from the NPS account.
4. You can choose the fund allocation percentage for annuity and withdrawable corpus, annuity details etc.
5. Your bank account will be verified online using Penny Drop Verification.
6. You need to upload KYC documents (identity and address proof), PRAN card/ePRAN copy and bank proof while submitting the NPS exit request.
7. All scanned documents should be readable.
8. You can authorize the request using either of the two options.
9. Various OTPs will be sent to your phone number and email ID for OTP verification.
10. By e-signing you can e-sign the request using your Aadhaar card.

Explain that to exit the National Pension System (NPS), you can withdraw from the pension scheme before or after reaching the retirement age of 60 years. On exit, you should use 40% of the accumulated amount to buy an annuity from the annuity service provider. If the remaining amount is less than Rs.5 lakh, it can be withdrawn as a lump sum amount.

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In such a situation, it is being speculated that the Modi government can also give green signal to the formation of the Eighth Pay Commission. The 8th Pay Commission is to be constituted in 2023 itself. The Pay Commission was constituted only in 2013 when the recommendations of the Seventh Pay Commission were implemented in 2016. The recommendations of the new Pay Commission are implemented after every 10 years.

Last year in August 2022, when the question was asked to the Finance Minister whether the Modi government would also give a green signal to the formation of the Eighth Pay Commission. The Pay Commission is to be constituted in 2023 itself. Then, while answering this question, Minister of State for Finance Pankaj Chaudhary had said that there is no proposal before the government to set up the 8th Pay Commission.

The Minister of State for Finance had given this answer in writing to the question asked during the Question Hour. Although it is not that easy either. Because the National Pension System, about which the Modi government was not getting confused, during the passage of the Finance Bill in the Lok Sabha, Finance Minister Nirmala Sitharaman announced that it has been decided to further improve the National Pension System for government employees.

And for that they have decided to form a committee under the chairmanship of the Finance Secretary. This decision of the Finance Minister was surprising.

The Lok Sabha elections to be held in 2024 are just a year away and the vote of the government employees is very important for the ruling party, in such a situation, a committee has also been formed to improve the National Pension System.

In such a situation, it is believed that the Modi government can also give a green signal to the formation of the Eighth Pay Commission. Before the Lok Sabha elections, the government cannot buy the displeasure of the government employees by not constituting the Pay Commission. Opposition parties can make it a big election issue like NPS.

There was already a tussle between the Center and the states ruled by the opposition parties regarding the National Pension Scheme. The old pension scheme was reinstated in Congress ruled states like Himachal Pradesh, Rajasthan, Chhattisgarh. After which the government has constituted a committee to review the NPS. That’s why it is being speculated that the government can also constitute the Eighth Pay Commission.

Let us tell you that since 1947 many Pay Commissions have been formed. The government constitutes a new pay commission every 10 years. On the basis of whose recommendations the salary of central employees and pension of pensioners are increased. The Seventh Pay Commission was constituted by the UPA government on 24 February 2014. In 2006 and 2016, the Sixth and Seventh Pay Commission had recommended a big hike in the salaries of central employees and the governments, accepting it, also increased the salaries of government employees.

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The committee will suggest whether any changes are necessary in the existing structure of the National Pension System (NPS) applicable to government employees. The committee will suggest modifications with a view to improve the pensionary benefits of government employees covered under NPS, keeping in view the fiscal implications and the overall budgetary impact.

4 members in the committee

Headed by Somanathan, the committee will have Secretary, Department of Personnel and Training (DoPT), Special Secretary, Department of Expenditure and Chairman, Pension Fund Regulatory and Development Authority (PFRDA) as members.

Finance Minister had announced

Finance Minister Nirmala Sitharaman had said last month that a committee headed by the Finance Secretary would look into pension related issues under NPS for government employees.

Employees organizations are demanding OPS restoration

This announcement has come in the backdrop of many non-BJP states restoring the Old Pension Scheme (OPS) and employees organizations in some other states demanding the same. The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have requested to return the accumulated funds under NPS while notifying the Center about their decision to restore the old pension scheme.

The finance ministry had told Parliament last year that it was not considering any proposal to restore OPS in respect of central government employees recruited after January 1, 2004.

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According to the new rules, you will be required to provide some documents. If a subscriber does not submit the required documents then he will not be able to withdraw his money from NPS.

PFRDA i.e. Pension Fund Regulatory and Development Authority ordered all the nodal officers to compulsorily upload the documents of the subscribers. If there is any mistake in these documents, then the money of the NPS subscriber will stop.

Let us tell you that according to the government circular, the NPS subscriber will have to submit documents, which include NPS exit / withdrawal form, ID and address proof, bank account proof, copy of PAN card. Also, before maturity from NPS, you can withdraw money for higher education of children, their marriage, construction or purchase of house and treatment of serious diseases. On the other hand, an investor in NPS can withdraw money only 3 times during the entire tenure.

Let us tell you that people from the age of 18 to 60 years can invest in NPS. This is a scheme launched by the Central Government in which investors can invest in both equity and debt. Apart from this, you can select the option of 75% equity investment in it. Whereas, after the completion of the tenure of the scheme, you can withdraw 60% of the total deposit amount. You can keep 40% of the money as an annuity, so that after 60 years you will get pension.

Actually, NPS is an investment plan for the long term. By investing in it, you can create a huge fund on retirement. Not only this, people investing in this scheme get a benefit of Rs 50 thousand under 80-CCD (1B) of income tax and Rs 1.5 lakh under 80-C.

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This scheme will give the benefit of pension after 60 years on your investment. This scheme gives you the benefit of both equity and debt. Experts believe that this scheme is a better option for this retirement planning and 10% annual return can be achieved in it and that too without taking much risk. According to tax and investment experts, if the NPS account holder makes a monthly contribution of Rs 12,500 from the age of 25, he can also get a tax rebate of Rs 1.5 lakh annually.

How much interest rate in long term

If you invest for a long period, then according to experts, you can get 10 percent interest or even more. However, for this, 60:40 equity loan ratio will have to be maintained. In such a situation, if an investor invests Rs 12 thousand 500 every month, then he can save tax up to Rs 1.5 on filing income tax return.

Monthly pension of Rs 95,707

If someone starts investing at the age of 25 and continues investing till the age of 35, then according to the NPS calculator, the account holder will get a maturity amount of Rs 2.87 crore and a monthly pension of about Rs 95,707 from the annuity.

How to get Rs 3 lakh

According to experts, to increase the pension amount, investment will have to be made for Systematic Withdrawal Plan. This will give a return of 7% to the investors. If the NPS account holder invests the NPS withdrawal amount of Rs 2.87 crore, then the monthly income from the investment will be Rs 1.99 lakh. In such a situation, a pension of about Rs 2.94 lakh will be received. However, you should invest in it only after understanding your risk and return.

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In this, the Department of Pension and Pensioners’ Welfare gives a lump sum option to some employees to get their pension as per CCS. This rule will be applicable only to those employees who were appointed against a post or vacancy which was notified prior to the date of notification of National Pension System (NPS).

NPS was notified on 22 December 2003. As per DoPPW, eligible employees can exercise the one-time option till 31 August 2023. Explain that it has now been decided that, in all cases where a Central Government civil servant has been appointed against a post against a vacancy which was advertised/notified for recruitment/appointment, the National Pension System covered under the National Pension System on joining service before the date of notification i.e. 22.12.2003 and on or after 01.01.2024,

You can take advantage of this option once

One time option can be given to be covered under CCS (Pension) Rules, 1972 (now 2021). This option can be exercised by the concerned government employees till 31.08.2023. Eligible Central Government civil servants, who do not exercise the lump sum option till 31st August, will continue to be covered by NPS. The DoPPW said that the option once exercised would be final.

DOPPW states that the matter regarding coverage under CCS Pension Rules, based on the option exercised by the Government Servant, will be placed before the Appointing Authority of the posts for which such option is to be considered as above. Used to be.

One-time option will have to be used by 31 August 2023

The DoPPW said that if the government employees fulfill the conditions of coverage under the CCS (Pension) Rules, 1972 (now 2021), as per these instructions, necessary orders in this regard will be issued latest by 31 October 2023. The NPS account of such government employees will, consequently, be closed from now on. Eligible employees will have to exercise the lump sum option by 31 August 2023. On exercising the option to switch to the old pension scheme, the employees will be required to subscribe to the General Provident Fund (GPF).

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How much hike expected

It is expected that the government will approve a 4% hike in DA and Dearness Relief (DR) rates for employees and pensioners respectively. If this happens, the new rate of DA for central government employees will increase to 42%.

What was the last DA hike?

Dearness Allowance payable to central government employees was increased from 34% to 38% of the basic pay with effect from 1st July 2022.At the same time, dearness relief for pensioners was also increased from 34% to 38%.Explain that the Central Government gives DA / DR to the employees and pensioners due to inflation. It is given on the basis of the recommendations of the 7th Pay Commission.

Gift on pension

Recently, the government has given a gift to a select group of central employees. They have been given a chance to opt for the old pension scheme. Old pension under the Central Civil Services (Pension) Rules, 1972 (now 2021) for employees who joined the Central Government Services against posts advertised or notified prior to December 22, 2003, the date of notification of the National Pension System (NPS) eligible to join the scheme.

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Along with this, your future is also secured. NPS is ac to invest for retirement. After retirement, a fat fund is prepared for your future. NPS is managed by PFRDA i.e. Pension Fund Regulatory and Development Authority. Why should you invest in NPS, let’s understand it in 5 points. 

1>> NPS Investment ie investing in NPS gives the benefit of deduction under section 80C, whose limit is Rs 1.5 lakh.

2>> Tax benefit is also available under section 80CCD (1B) on NPS investment. This benefit is different from the benefit available under section 80C. A deduction of Rs 50,000 is available under this section. In this way, a total tax benefit of Rs 2 lakh is available.

3>> Tax benefit is also available on NPS under 80CCD(2). Under this section, if an employer deposits money in the NPS account of his employee, then the employee gets tax exemption. The benefit of this section is available in addition to section 80C. Its limit can be up to Rs 7.50 lakh or 10% of the salary.

4>> National Pension System comes under “EEE” category. Tax benefit is available on investment. The return and maturity amount are also completely tax free.

5>>NPS is one of the cheapest pension scheme in the world. The benefit of compounding is available in the long run. Due to this, a big corpus is prepared for your future. At least 500 rupees can be invested in this.

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In fact, the United Forum of Bank Unions (UFBU) has postponed the two-day nationwide bank strike to be held on January 30-31 following the consensus reached in the conciliation meeting held in Mumbai.

Why was the countrywide bank strike postponed

All India General Secretary of Bank Employees’ Association (AIBEA) CH Venkatachalam has informed that the bank unions will first discuss their demands on January 31. According to Venkatachalam, the Indian Banks’ Association (IBA) has agreed to hold a meeting with the unions on January 31.

In the conciliation meeting held on Friday, it was decided that three common issues of five-day banking, updation of pension and restoration of old pension scheme would be discussed on January 31. Other issues will be discussed separately with the concerned authorities and labor unions.

Who had decided to go on strike

Significantly, the UFBU, a group of several bank unions, had earlier decided to go on strike for their various demands. According to him, these demands are being put before the ministry for a long time and no decision has been taken on them.

Bank unions have many demands – know about some

Bank unions have several demands including 5-day banking working culture, upgradation of pension, residual issues, scrapping of National Pension System (NPS), immediate commencement of negotiations on charter of demands for wage revision and adequate recruitment in all cadres. The decision to call the strike was taken by the UFBU.

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Investing in government schemes is very easy and it is also very safe. One such scheme is being told here in which if you invest Rs 200 daily. After the completion of the term of the scheme, you will get 50 thousand rupees every month.

Which is this government scheme?

Many types of schemes are run by the government for the employed people, in which you get a good return after making a long term investment. There is a scheme of the government named National Pension System (NPS) in which you can invest. Money has to be deposited for long-term in the National Pension System. In this government scheme, if you put Rs.6000 every month for Rs.200 per day, then after 60 years you will get Rs.50,000 per month. Under this scheme, there are two types of accounts, NPS Tier 1 and NPS Tier 2. People who do not have PF deposit can open Tier 1 account by depositing Rs 500.

This is how you will get Rs 50,000

If your age is 24 years, then this scheme will give you maximum benefit. If you open an NPS account at the age of 24 and have to invest Rs 6000 in it every month. You will have to deposit money in it till the age of 60 years, that means you have to keep depositing money in it for about 36 years. After this this amount becomes Rs 2,55,2000.

If 10% return is assumed on your deposit, then its total corpus value becomes Rs 2,54,50,906. If you buy NPS annuity from 40% of your maturity income, then Rs 1,01,80,362 will be deposited in your account. If 10% return is assumed on this, then the total deposit amount in your account will be around 1,52,70,000. When you complete 36 years, then NPS will give you Rs 50,000 per month as pension.

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The Pension Fund Regulatory and Development Authority (PFRDA) regulates the NPS. In such a situation, PFRDA makes all the rules related to it. It is worth noting that PFRDA always advises NPS subscribers to add Nominee, but many times people do not add nominee and they die. In such a situation, it is a common question that if a NPS subscriber has not added a nominee and has died, can the name of the nominee be changed after the subscriber’s death? Let’s know about this-

Can the nominee be changed after death?

On this matter, PFRDA has issued a circular on October 22 informing that only the subscriber has the right to choose the nominee. If any person tries to change the nominee details after the death of an NPS account holder by logging into the account using his/her details, then all the changes made in such a situation will be invalid. Along with this, the process of claim will be started according to the details given by the subscribers. In such a situation, the changes made in the NPS account are valid only when the person is alive.

How to claim if there is no nominee

If an NPS subscriber dies without adding a nominee, then in such a situation only his legal heir can get the claim. For this, the people of his family will have to show the Succession Certificate. This certificate will have to be submitted to the Revenue Department. After this the department will complete the verification process. After this, the entire money deposited in NPS will be given to the legal heir.  

This document is required for NPS claim-

• Death Certificate of NPS Subscriber
• Aadhaar Card of NPS Subscriber
• Aadhaar Card of Nominee or Successor
• succession certificate

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If you want to create a retirement corpus for pension, then National Pension System (NPS) can be the best option for this. The government runs a scheme to financially secure the future of private job seekers. The name of this scheme is National Pension Scheme. If you invest properly in this scheme, then after retirement you can get a pension of up to 50 thousand rupees every month. Here we are going to give you information about how you can get this much pension. Let us tell you how much money you will have to invest every month to get a pension of 50 thousand rupees.

Get tax exemption

NPS account holder gets income tax exemption of up to Rs 1.5 lakh under section 80C and additional Rs 50,000 under section 80CCD. However, the income from annuity is taxed. This income can be deducted from all your other income. By adding in, your slab will be determined and income tax will have to be paid accordingly. Whereas in Tier-1 account of NPS, the benefit of tax exemption is available on both contribution and withdrawal. In this case, the account holders will also get this benefit.

Heavy duty scheme

NPS is a mode of investment. It has been designed in such a way that even after retirement people can afford their expenses. It has less risk than equity and higher returns than PPF or Fixed Deposit. There are four asset classes in NPS – Equity, Corporate Debt, Government Bonds and Alternative Investment Funds. Investors have two options to invest in NPS – Active and Auto Choice.

Subscriber cannot withdraw the entire corpus on maturity. He has to invest 40% of the total NPS corpus in buying an annuity plan from a life insurance company. This annuity amount is the regular pension that the subscriber will get after retirement. The remaining 60 percent amount can be withdrawn in lump sum. However, some part of this can also be invested in buying an annuity. Thus an NPS subscriber can use more than 40% of his corpus and up to 100% to buy annuity. The more money you leave to buy an annuity, the more pension you will get after you retire.

How to get Rs 50,000 pension

If you want to get a pension of 50 thousand rupees every month after retirement, then you have to invest in this way. For this, you have to start investing from the age of 24. You have to deposit Rs 6000 every month. Accordingly, you will have to save Rs 200 daily. If he invests in NPS like this for 36 years, his total NPS investment at maturity at 10% per annum will be Rs 2,54,50,906.

If he spends 40% of his total corpus on buying annuity, he will get a pension of Rs 50,902 per month after retirement. If someone wants to get a pension of up to 75 thousand rupees after retirement, then he will have to invest 10 thousand rupees every month in NPS. Think of it like a 25 year old person invests Rs 10,000 every month in NPS for the next 35 years.

His total NPS investment at 10% annual return at maturity is Rs.3,82,82, 768 will be Rs. If he spends 40% of his total corpus on buying annuity, he will get a pension of Rs 76,566 per month after retirement.

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Nowadays people have become very conscious about the expenses after retirement. Actually, maintaining the post job expenses is a big challenge. For a comfortable life in old age, a hefty amount in your account and regular income every month is very important. In such a situation, nowadays there are many great schemes in which you can secure your old age by investing. One such scheme is NPS i.e. National Pension System for this. By investing in this, you can deposit a huge amount for your old age.

Let us tell you that nowadays this is the most popular pension scheme in which there is no investment limit. The special thing is that NRI can also invest in this scheme. Let us know all the details about this scheme.

Features of NPS scheme

– Any person aged 18 to 70 years can invest in this scheme.
Both government and private employees (Private and Government Employees) can invest.
Under this scheme two accounts Tier 1 and Tier 2 are opened.
You should know that without Tier 1 no one can open Tier 2 account.
It is a government-backed social security investment scheme.
In this, the investor gets both loan and equity exposure.

According to the calculation, from the age of 28 years for 60 years, if we invest 10 thousand rupees every month, then the
total amount = 38 lakh 40 thousand rupees,
now according to the expected return of 10 percent, the
total corpus = 2.80 crore rupees,
now lump sum amount = 1.6 crore rupees
Now if we keep the estimated annuity rate of 8% per annum, then after 60 years the
total amount (pension) = 75 thousand rupees per month.

Now let’s understand by example, if an investor invests 10 thousand rupees every month in NPS at the age of 28 years and keeps doing it till the age of 60 years, then he will get more than 1.5 crore rupees as well as a pension of 75 thousand rupees every month. Will also get

See calculation here

According to the calculation, from the age of 28 years for 60 years, if we invest 10 thousand rupees every month, then the
total amount = 38 lakh 40 thousand rupees,
now according to the expected return of 10 percent, the
total corpus = 2.80 crore rupees,
now lump sum amount = 1.6 crore rupees
Now if we keep the estimated annuity rate of 8% per annum, then after 60 years the
total amount (pension) = 75 thousand rupees per month.

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Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

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In response to the question asked by Congress MLA Ravindra Singh Tomar regarding the old pension of the employees, Jagdish Deora has written that NPS has been implemented by the state government for all government servants appointed on or after January 1, 2005. There is no provision of minimum pension in the National Pension System.

Annuity is received on the basis of 40 percent of the total contribution deposited by the government servant during the entire service period and the contribution in the fixed ratio of the state government, the remaining amount is paid in lump sum.

When will the old pension scheme be implemented in the state?

Finance Minister Deora further said that this amount is based on the salary and total service period of government servants. At present no proposal for old pension is under consideration.

The Congress MLA had asked the Minister that any action is being taken regarding the restoration of the old pension system after retirement to the officers and employees of the State Government appointed after January 1, 2005, if so, by when. Otherwise why, Deora has answered this question.

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At the time of retirement, you can withdraw 60 percent of the total amount deposited in NPS in lump sum, while the remaining 40 percent amount goes to the pension scheme. There is no limit for investment in NPS.

The higher the amount of 40% annuity, the better will be your pension in old age. But sometimes due to some reasons your account and PRAN (Permanent Retirement Account Number) are deactivated or frozen. If you are having trouble logging into your NPS account online, it could be that your account is also frozen. Know here why this happens and what is the way to activate it again?

Reason for account deactivation

Actually you can put money in NPS in two ways. The first is Tier-1 and the second is Tier-2. Tier-1 is a retirement account, while Tier-2 is a voluntary account. You have to invest Rs.500 in Tier 1 while opening the account. After this, 1000 rupees have to be inserted in Tier 2. You have to make this contribution in every financial year. But if for some reason you are not able to deposit the minimum amount annually in your account, then your account is deactivated. 

How to activate

• To reactivate the frozen account, you have to fill the UOS-S10-A form. You get this form from the post office. Or you can take this form from where your NPS is running. 
• You can also download the form online. For this you have to click on a link. Link is- https://npscra.nsdl.co.in/download/non-government-sector/all-citizens-of-india/forms/UoS-S10A-Unfreezing%20of%20PRAN.pdf 
• A copy of the PRAN card of the subscriber has to be attached along with the form. Along with this, you have to deposit 500 rupees in the account and also have to pay a penalty of 100 rupees. 
• After submitting the application, your account is verified by the officials of the office. After this your application is processed and PRAN is activated.

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At the same time, before retirement, if funds are needed in an emergency, you can withdraw 60 percent of the amount from the deposit. However, it is necessary to put 40 percent of this amount in pension. Today we will know here that if someone wants to exit from NPS, how can he do it? Explaining further about its rules and process.

Let us tell you that NPS gives three different types of exit options. The first one gives the option of premature exit i.e. before the age of 60 years. The second gives the option to exit at the age of 60 years or more and the third allows to exit in case of untimely death of an account holder.

Rules for exit from NPS

After retirement till the age of 75 years, customers can opt for lump sum or annual withdrawal i.e. pension option to exit from NPS or can also postpone both. After 75 years, they have to exit from this scheme. However, its default option allows annual withdrawal of a minimum of 40 percent of the deposit amount and one-time withdrawal of the remaining 60 percent. At the same time, the customer also has the option of annual withdrawal of the entire amount.

Process of exit from NPS

Subscribers can now exit NPS through both offline and online mode. To process the exit online, the customer can place his request online with the help of OTP/e-sign. According to PFRDA, in the online process, customers will be able to log in to the Central Record Keeping Agency (CRA) system and submit an exit request.

Here they have to submit the details related to the exit. In this, customers can choose the option of lump sum or annual withdrawal. For this, the customer has to provide details of fund allocation, Annuity Service Provider (ASP), Annuity Scheme etc.

Along with this, KYC and other documents will have to be uploaded. After this POP also verifies the customer bank account number and uploaded documents with the help of ‘Instant Bank Account Verification’. To process this request, the customer also has to pay its charges. These charges are 0.125% of the total fund

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At the same time, after retirement, pension is guaranteed every month. Two types of accounts are opened under NPS Tier-1 and Tier-2. Tier-1 is a retirement account, while Tier-2 is a voluntary account, in which any salaried person can start investing on his own behalf. Tier-2 account opens only after Tier-1 account is opened.

A minimum contribution of Rs 500 has to be made for opening an NPS Tier-1 account and a minimum contribution of Rs 1000 for a Tier-2 account. Earlier the limit was Rs 6,000, which was reduced to Rs 1,000. If the minimum annual investment is not made, the account is frozen and deactivated.

If you are 28 years old. If you invest Rs 4,200 every month in NPS and aim to invest till the age of 60, then you will get investment time for 32 years. Your total investment in 32 years will be Rs 16,12,800, while the total corpus will be Rs 1,49,10,428. You can withdraw 60% of the amount in lump sum from the total corpus. That is, you will get 90 lakh rupees in lump sum. It will be tax free.

It is necessary to buy 40% annuity on NPS investment. The insurance company gives pension for life only from the amount of annuity. It depends on the returns earned by the fund from investments in equity and debt. Higher the annuity higher will be the amount of pension. The amount of 40% annuity in Rs 1.49 crore will be Rs 59,64,171. You will get a pension of Rs 30,000 every month at 6% annuity rate.

Extra tax benefit is available in NPS. Under NPS, under Section 80CCD (1B) of the Income Tax Act, the benefit of extra tax exemption is available on investment up to Rs 50,000. If you have met the limit of up to Rs 1,50,000 lakh under section 80C, then NPS can also help you in additional tax savings.

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Organizations not involved in the online meeting

The joint platform of ten labor organizations in an e-mail sent to the Finance Ministry on Monday put forward their demands regarding the next budget. However, these organizations did not attend the online meeting called for pre-budget discussions.

Pension scheme is based on contribution

National Pension System (NPS) was implemented from January 2004 by abolishing OPS during the tenure of Atal Bihari Vajpayee government. NPS is a contribution based pension scheme and there is no provision for dearness allowance. After increasing complaints of employees getting less amount of pension under NPS, labor organizations have intensified their demands for re-implementation of OPS itself.

Meanwhile, some states like Rajasthan, Chhattisgarh and Punjab have announced re-implementation of OPS for their government employees.

Organizations want to have face-to-face meeting

Forum of labor organizations said, ‘Government should re-implement the old pension system instead of NPS by giving contribution on its behalf.’ These organizations did not participate in the online meeting, demanding a face-to-face meeting with the Finance Minister. Each organization was given three minutes to present their demands related to their area.

Demand to increase the minimum pension amount , however, SP Tiwari, general secretary of the Trade Union Coordination Center (TUCC), who attended the pre-budget consultation meeting, also said that in the meeting there was a demand for restoration of OPS instead of NPS. Along with this, a demand was also made to increase the amount of minimum pension from Rs 1,000 to Rs 5,000.

Demand for increase in mental honorarium

Bhartiya Mazdoor Sangh (BMS) said that apart from increasing the amount of minimum pension, it should also be linked with dearness allowance, so that the needs of the pensioners can be met. BMS also demanded the government to allocate more funds to the unorganized sectors. Apart from this, there has also been a demand to increase the monthly honorarium to the workers associated with Anganwadi, Asha and mid-day meal schemes.

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There are many schemes going on in the market regarding investment, some of them are Fixed Deposit, Public Provident Fund (PPF) and National Pension System (NPS). Talking about NPS, it is a voluntary retirement savings scheme, which encourages you to have planned savings. In this, you can keep your savings safe in the form of pension.

If you work in the private sector, you should consider investing as early as possible. Suppose you start investing Rs 4,000 every month in NPS at the age of 26 and continue investing till the age of 60, you will get more than Rs 35,000 as monthly pension. This is added by keeping the interest rate at 11 per cent.

About 2 crores back

If you start investing in this scheme from the age of 26, then your total investment will be Rs 16,32,000 when you reach the age of 60 years. At this point of time, your total corpus will be Rs.1,77,84,886. You will be surprised to know that you have invested only Rs.16,32,000 but you are getting back almost Rs.2 crores.

Your life will be happy after retirement

If you invest money in this scheme, then the lump sum return you will get will be Rs 1,06,70,932, while you will get around Rs 35,570 as monthly pension. So, you can see that not only will you be getting a pension of around Rs.35,000 per month starting at 61 years of your age, but you will also be getting a lump sum payment of more than Rs.1 crore. You will get so much money that your life will be happy after retirement.

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Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

The post Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details first appeared on Rightsofemployees.com.

Financial experts consider NPS as a great plan for long term investment. This is the reason why they invest a lot in it. Tax exemption can also be availed on investments made in this scheme under section 80CCD(1), section 80CCD(1B), and section 80CCD(2) of the Indian Income Tax Act, 1961.

2 accounts can be opened in NPS. Tier 1 and Tier 2. Tier 2 account is the savings account. It is voluntary. There is no restriction on withdrawing money from it. Tier 1 account is the retirement account. Certain conditions apply when withdrawing money from this account. Any Indian citizen between the age of 18 to 70 years can open an NPS account. If you also want to open NPS account then you do not need to go anywhere. You can do this work online sitting at home. Today, we are telling you how you can open an account with the help of Aadhaar.

How to open an account with Aadhar?

• First of all, one has to visit the e-NPS portal (https://enps.nsdl.com/eNPS/NationalPensionSystem.html).
• After this you have to click on “National Pension System” and then “Registration” option.
• Now select the account type in “New Registration”.
• After that click on the option either Indian Citizen, ARI or OCI.
• Select “Aadhaar Online/Offline KYC” option from “Register With”.
• Select “Tier I only” from Tier Types.
• Now you have to enter 12 digit Aadhaar or 16 digit Virtual ID and then click on Generate OTP.
• Now you have to enter the OTP you have received.
• After verification, your name, gender, date of birth, address, photo will be obtained from the Aadhar record.
• Now click on Demographic Changes in the menu option.
• Here again click on ‘Update Personal Details’.
• Now on the ‘Subscriber Modification’ page, select ‘Add/Update Nominee Details’ and click on ‘Confirm’.
• One has to choose either Tier 1 or Tier 2 account and then declare the nomination for the account.
• Nominee’s name, date of birth, relation, guardian’s name, address, pin code, city, state and country, and whether he is an adult or not, etc. have to be filled.
• If you want to add more than 1 nominee then click on ‘Add’.
• Now click on Save. If you do not want to make any changes in the form, then click on submit.
• An OTP will come on your registered mobile number. Fill it at the designated place.
• After doing this the form will open again. Click on ‘e-Sign & Download’ for e-sign here.
• After clicking, the option of Proceed will appear, click on it.
• Now you will reach the NSDL Electronic Signature Service page.
• Fill in the information given here. Thereafter, the portal will ask you for VID/Aadhaar number.
• Enter Aadhaar number and click on ‘Send OTP’. OTP will come on your mobile number.
• Enter it and click on ‘Verify OTP’.
• After this you have to download the registration details in PDF format to your device by clicking on Download e-Sign file.
• Your account has been opened.

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After their NPS account matures, account holders can withdraw a lump sum amount from the corpus and later invest the remaining amount to buy an annuity for a fixed monthly pension.

Activate and auto-choice options

NPS offers four asset classes – equities, corporate debt, government bonds and alternative investment funds. An investor has two options to invest in NPS – Active and Auto Choice.

How to get Rs 75,000 monthly pension after retirement?

Who does not want a good amount every month in his bank account. So, if you want to get more than Rs 75,000 as pension per month from your NPS investment, here is how much you need to contribute. know about this.

For this, the total accumulated NPS corpus at maturity should be Rs 3.83 crore (ie at the age of 60 years). Here, we are assuming that we use only the mandatory 40 per cent NPS corpus to purchase annuity. The annuity rate is assumed at 6 percent interest per annum.

For example, a 25 year old person is investing Rs 10,000 monthly in NPS for the next 35 years (i.e. till the age of 60 years). Assuming 10% annualized return, the total NPS investment at maturity will increase to Rs 3,82,82,768. If they use 40 per cent of the total corpus to buy an annuity, they will get a pension of Rs 76,566 per month after retirement.

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The National Pension System is considered better for those people who need a fixed amount every month for post-retirement expenses. Especially when there is no source of income.

National Pension System investment involves very less risk and PPF gives higher returns than Fixed Deposits. Under the National Pension System, the subscriber is given the opportunity to invest in two ways, Active and Auto Choice.

How to get 75000 rupees pension

In Active Choice, the customer allows his money to be invested in instruments like stocks, government securities. 75% of the total NPS investment can be invested in Active Choice. Let us know how much will have to be invested in NPS for pension of Rs 75,000 every month.

For investing Rs 75,000 per month, the maturity amount of NPS i.e. Rs 3.83 crore on the subscriber’s 60 years should be Rs. This money will be received from the annuity plan which is invested at the time of maturity. The most important thing is to know how to raise Rs 3.83 crore, so that after the age of 60, a pension of Rs 75,000 will be available every month.

Start investing with Rs 10,000

Suppose a person of 25 years starts investing Rs 10,000 in NPS every month for the next 35 years. With a return of 10% every year, at the age of 60, Rs 3,82,82,768 will be accumulated.

If 40 percent of this amount is invested in buying an annuity plan, then till retirement Rs 76,566 will be available every month. Such people whose age is 30 years and they start investing Rs 16,500 in the National Pension System every month, then after retirement they will easily get a pension of Rs 75,218.

Two types of accounts are opened in the National Pension System. Tier 1 account and Tier 2 account. Tier 1 account is mandatory which will be opened for every NPS subscriber, whereas Tier 2 account can be opened by the subscriber at his own discretion.

The National Pension System was first started only for government employees, but later it was started for employees of many sectors.

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Pension regulator Pension Fund Regulatory and Development Authority (PFRDA) in the country has made some changes in the NPS rules in recent days, which we are going to tell about here.

Payment of Trail Commission to POP In order to support POP ie Point of Purchase, PFRDA has now issued a new rule regarding Trail Commission. According to this, now NPS account holders will have to pay trail commission to the POP. Along with this, PFRDA clarified that the MPS contribution made through D-Remit will attract trail commission like e-NPS (contribution to NPS online mode). This rule has been implemented on September 1, 2022.

According to the information given by PFRDA, the trail commission paid to the POP will be a minimum of Rs 15 and a maximum of Rs 10,000 or 0.20 percent of the contribution amount.

NPS e-nomination

PFRDA has recently changed the e-nomination process for government and non-government sector employees. According to the new rules, the nodal office will now have the right to accept or reject the application for e-nomination made by the NPS account holder. If the nodal office does not take any action on the same within 30 days, then the application for e-nomination will automatically go to the Central Recordkeeping Agency (CRA). This rule will come into effect from 1 October 2022.

Payment by Credit Card

Under the new rules issued by PFRDA, NPS account holders residing in Tier-II cities will no longer be able to contribute to NPS through credit cards. This notification was issued by PFRDA on 3 August 2022. Since then, credit card contributions to NPS account holders in Tier-II cities have been banned.

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The National Pension System is considered better for those people who need a fixed amount every month for post-retirement expenses. Especially when there is no source of income.

National Pension System investment involves very less risk and PPF gives higher returns than Fixed Deposits. Under the National Pension System, the subscriber is given the opportunity to invest in two ways, Active and Auto Choice.

How to get 75000 rupees pension

In Active Choice, the customer allows his money to be invested in instruments like stocks, government securities. 75% of the total NPS investment can be invested in Active Choice. Let us know how much will have to be invested in NPS for pension of Rs 75,000 every month.

For investing Rs 75,000 per month, the maturity amount of NPS i.e. Rs 3.83 crore on the subscriber’s 60 years should be Rs. This money will be received from the annuity plan which is invested at the time of maturity. The most important thing is to know how to raise Rs 3.83 crore, so that after the age of 60, a pension of Rs 75,000 will be available every month.

Start investing with Rs 10,000

Suppose a person of 25 years starts investing Rs 10,000 in NPS every month for the next 35 years. With a return of 10% every year, at the age of 60, Rs 3,82,82,768 will be accumulated.

If 40 percent of this amount is invested in buying an annuity plan, then till retirement Rs 76,566 will be available every month. Such people whose age is 30 years and they start investing Rs 16,500 in the National Pension System every month, then after retirement they will easily get a pension of Rs 75,218.

Two types of accounts are opened in the National Pension System. Tier 1 account and Tier 2 account. Tier 1 account is mandatory which will be opened for every NPS subscriber, whereas Tier 2 account can be opened by the subscriber at his own discretion.

The National Pension System was first started only for government employees, but later it was started for employees of many sectors.

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What is NPS Scheme

National Pension System (NPS) is a government pension scheme, which includes both equity and debt instruments. NPS gets a guarantee from the government. You should invest in NPS scheme to get higher monthly pension after retirement.

Have to invest from the age of 20 If you start depositing money in NPS at the age of 20 and deposit 1000 rupees every month, then by the age of retirement your total contribution will be 5.4 lakhs. Apart from this, you will get an annual return of 10 percent in this, due to which your investment will increase to 1.05 crores.

21140 pension will be available every month, now if the NPS subscriber converts 40 percent of the corpus into an annuity, then its value will be 42.28 lakh. At the same time, the monthly pension can be Rs 21,140 at the annual rate of 10 percent. Not only this, the NPS subscriber will get a lump sum amount of about Rs 63.41 lakh.

Income Tax Rebate

NPS Pension Scheme is a government scheme like Public Provident Fund (PPF), Employees Provident Fund (EPF), Sukanya Samriddhi Yojana etc. In this, any investor can also increase his monthly pension amount by making the right use of maturity amount. Through NPS, you can save tax up to Rs 2 lakh annually. You can save tax up to a maximum of Rs 1.5 lakh under Section 80C of Income Tax. If you invest in NPS, you will get an additional tax exemption of up to Rs 50,000.

There are three types of investment options There are three investment options available
in NPS, in which the investor has to choose where his money will be invested. Equity, Corporate Debt and Government Bonds. With more exposure to equities, it also gives higher returns. Keep in mind that you should do any investment only after talking to your investment advisor.

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The National Pension System is considered better for those people who need a fixed amount every month for post-retirement expenses. Especially when there is no source of income.

National Pension System investment involves very less risk and PPF gives higher returns than Fixed Deposits. Under the National Pension System, the subscriber is given the opportunity to invest in two ways, Active and Auto Choice.

How to get 75000 rupees pension

In Active Choice, the customer allows his money to be invested in instruments like stocks, government securities. 75% of the total NPS investment can be invested in Active Choice. Let us know how much will have to be invested in NPS for pension of Rs 75,000 every month.

For investing Rs 75,000 per month, the maturity amount of NPS i.e. Rs 3.83 crore on the subscriber’s 60 years should be Rs. This money will be received from the annuity plan which is invested at the time of maturity. The most important thing is to know how to raise Rs 3.83 crore, so that after the age of 60, a pension of Rs 75,000 will be available every month.

Start investing with Rs 10,000

Suppose a person of 25 years starts investing Rs 10,000 in NPS every month for the next 35 years. With a return of 10% every year, at the age of 60, Rs 3,82,82,768 will be accumulated.

If 40 percent of this amount is invested in buying an annuity plan, then till retirement Rs 76,566 will be available every month. Such people whose age is 30 years and they start investing Rs 16,500 in the National Pension System every month, then after retirement they will easily get a pension of Rs 75,218.

Two types of accounts are opened in the National Pension System. Tier 1 account and Tier 2 account. Tier 1 account is mandatory which will be opened for every NPS subscriber, whereas Tier 2 account can be opened by the subscriber at his own discretion.

The National Pension System was first started only for government employees, but later it was started for employees of many sectors.

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NPS is a long term investment. But, it provides pension income for you after retirement. Unlike the old pension scheme, there is no guarantee of pension amount in NPS. The pension amount depends on your accumulated corpus. Despite this, this product guarantees you income after retirement.

The post National Pension Scheme: How to get Rs 50000 monthly pension, check rules details first appeared on Rightsofemployees.com.

There is good news for the account holders of National Pension System (NPS). The Pension Fund Regulatory and Development Authority (PFRDA) has also started the facility of Unified Payment Interface (UPI) for contribution through de-remit. That is, now account holders can also put money in NPS through UPI. Till now this deposit was done only through IMPS / NEFT / RTGS.

Now with the facility of payment through UPI, it will be easier for the account holders to contribute. Let us tell you that UPI is a real time payment system, which allows instant transfer of money from one bank account to another bank account. The special thing is that through UPI you can transfer money at any time throughout the day. Let us tell you that this facility has also been started for the account holders of Atal Pension Yojana. However, the contribution made before 9.30 am will be counted as investment for that day but after that, it will be counted as investment for the next day.

How to make payment through UPI

• First of all login to the website of ENPS.
• Verify your Permanent Account Number.
• You will get OTP on registered mobile number or e-mail.
• Select Tier-1 or 2 account for which Virtual Account (VAN) is to be created.
• Give your consent and select Generate Virtual Account.
• An application will be sent to your trustee bank and you will get the acknowledgment number.
• Enter the 15 digit VAN in your UPI handle.
• After that enter PFRDA.15digitVirtualAccount@(bank’s name) and send Rs.

What is National Payment System

Let us tell you that the NPS scheme is for the employees of the organized sector. It was made mandatory for central government employees (except armed forces) in 2004. This is applicable to only those employees who have joined the service from 1st January 2004. In May 2009, it was extended to the private and unorganized sector on a voluntary basis.

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There is good news about two pension schemes of pension fund regulator PFRDA – National Pension System (NPS) and Atal Pension Yojana (APY).Now the subscribers associated with the scheme will also be able to make their contribution through UPI. Apart from this, the pension fund regulator said that the contribution received before 9.30 am will be treated as investment made on the same day while the amount received after that time will be counted for the next day’s investment.

Till now subscribers could send their voluntary contribution directly through Net Banking account using IMPS/NEFT/RTGS but now the scope has been extended.

About the scheme: Let us tell you that the NPS scheme is operated for the employees of the organized sector. This scheme, implemented since 2004, is mandatory for central government employees (except armed forces).This is applicable to only those employees who have joined the service with effect from 1st January 2004.In May 2009, it was extended to the private and unorganized sector on a voluntary basis.

Whereas, Atal Pension Yojana or APY is for employees of unorganized sector. The subscribers of the scheme get a minimum pension of Rs 1,000 to Rs 5,000 monthly with a guarantee after attaining the age of 60 years depending on their contribution. Crores of people are connected with both these schemes.

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Pensioners of this scheme will get benefits. Let us know about this special scheme of the government. Under this program, preparations are being made to bring Minimum Assured Return Scheme, which will benefit crores of investors of the country. It can be launched in the National Pension System (NPS) itself by 30 September.

Scheme may start from 30th September

PFRDA chairperson Supratim Bandyopadhyay said, “Right now we are working on the minimum guarantee return scheme. He said that PFRDA understands the impact of inflation and depreciation of rupee on its investors and gives returns accordingly. At present, work is underway on a minimum return scheme in NPS, which will enable investors to get a huge amount. Bandopadhyay told that the minimum guarantee scheme can be started from 30 September.

How much return have you got so far?

Supratim Bandopadhyay has informed that in the last 13 years, the National Pension Scheme has given investors returns at the rate of more than 10.27% annually. In fact, to provide relief from rising inflation, efforts are being made to ensure that investors get strong returns under NPS. With the advent of the Guarantee Return Scheme, crores of people of the country will benefit and the number of people applying for the National Pension will also increase rapidly.

Subscribers will become 20 lakhs

Now let’s talk about returns, then the chairperson of PFRDA said that the size of pension assets is Rs 35 lakh crore, out of which 22 percent i.e. total Rs 7.72 lakh crore is with NPS and 40 percent is with EPFO ​​(Employees Provident Fund Organization). The maximum age of joining has now been increased to 70 years, due to which the number of subscribers has increased a lot. Now the total number of subscribers has increased from 3.41 lakhs to 9.76 lakhs.

Know what is NPS

The Central Government had compulsorily implemented NPS for its employees on 1 January 2004. After this all the states adopted NPS for their employees. After the year 2009, this scheme was also opened to those working in the private sector. After retirement, employees can withdraw a part of NPS, while the rest can take annuity for regular income. Anyone in the age group of 18 to 70 years can take the National Pension Scheme.

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Office of 8 Schemes That Will Make You Crorepati in Few Years The Pension Fund Regulatory and Development Authority (PFRDA) has invited suggestions from consultants requesting proposals for designing the scheme. Earlier, Chairman of Pension Regulatory Supratim Bandyopadhyay had said that discussions are being held with pension funds and actuarial firms in this regard. Minimum Assured Return Scheme is permitted under the PFRDA Act. The funds being managed under Pension Fund schemes are mark-to-market. It has some ups and downs. These are evaluated on the basis of market conditions.

Know what is National Pension Scheme (NPS)

The Central Government had compulsorily implemented the National Pension Scheme on 1 January 2004 for its employees. After this all the states have implemented NPS for their employees. This scheme has also been started for those working in the private sector after 2009. Employees can withdraw a part of NPS after retirement. Also, from the remaining amount, you can take an annuity for regular income. Any person in the age group of 18 to 70 years can avail NPS.

Know what advisors are saying As per the RFP draft of PFRDA, the appointment of a consultant for preparation of Guaranteed Return Scheme under NPS should not create a principal-agent relationship between PFRDA and the service provider. As per the directions of the PFRDA Act, a subscriber opting for a scheme under the National Pension Scheme which gives ‘Minimum Assured Returns’ will have to offer such a plan by a pension fund registered with the regulator. Thus the advisors will have to formulate a ‘Minimum Assured Return’ scheme for the existing and potential clients by the pension fund.

The post NPS Pensioners: Big update for pensioners, know the government’s plan for guaranteed returns first appeared on Rightsofemployees.com.

Minimum assured return scheme will start

The Pension Fund Regulatory and Development Authority (PFRDA) has invited suggestions from the Request for Proposal for consultants to design the scheme. Earlier, Chairman of Pension Regulator Supratim Bandyopadhyay had said that discussions are being held with pension funds and actuarial firms in this regard. Under the PFRDA Act, a minimum assured return scheme is permitted.

The funds being managed under pension fund plans are marked-to-market. There are some ups and downs in it. These are evaluated on the basis of market conditions.

Know what is National Pension Scheme (NPS)

The Central Government had compulsorily implemented the National Pension Scheme for its employees on January 1, 2004. After this, all the states have implemented NPS for their employees. After 2009, this scheme has also been started for those working in the private sector. Employees can withdraw a part of NPS after retirement. Also, from the rest of the amount, you can take an annuity for regular income. Any person in the age group of 18 to 70 years can take advantage of NPS.

Know what advisors are saying

As per the RFP draft of PFRDA, the appointment of a consultant for preparation of the Guaranteed Return Scheme under NPS should not create a principal-agent relationship between PFRDA and the service provider.

As per the instructions of the PFRDA Act, the subscriber opting for a scheme under the National Pension Scheme which gives ‘Minimum Assured Return’, such scheme will have to be offered by the Pension Fund registered with the regulator. In this way the advisors will have to prepare a ‘Minimum Assured Return’ scheme for the existing and potential subscribers by the Pension Fund.

The post NPS Pensioners: Big update for pensioners, know government’s plan about guaranteed returns first appeared on Rightsofemployees.com.