NPS To OPS: Major Change in NPS
Govt Contribution Raised to 14%
New Pension Scheme to Old Pension Scheme: As per the media news, the Union Cabinet approved on Thrusday(6.12.2018) to raise the contribution to National Pension Scheme (NPS) to 14 per cent.
Major Changes has been inititated by the Central Government in the exisiting National Pension Scheme applicable for the employees joined on or after 1.1.2004 in Central Govenment Services. The minimum contribution is now 10% of basic pay. The Government contribution may be raised to 14% of basic pay.
At present, the monthly contribution amount would be 10% of the salary and dearness allowance (DA) to be paid by the employee and matched by Government.
The Cabinet Committee also approved to increase the commutation percentage from 40% to 60%.
At present, there is only one default scheme for Tier I for Government employees. In the default scheme, the contribution is allocated to three PFMs, viz. SBI Pension Funds Private Limited, UTI Retirement Solutions Limited and LIC Pension Fund Limited in a predefined proportion.
With effect from 10.06.2015, each of the PFMs will invest the funds in the proportion of upto 50% in Government Securities and Related Investments, upto 45% in Debt Instruments and Related Investments, Upto 5% in Short-term Debt Instruments and Related Investments, upto 15% in Equities and Related Investments and upto 5% in Asset Backed, Trust Structured and Miscellaneous Investments.
More News About NPS to OPS
- Transfer Of NPS To GPF
- Finmin Order – NPS Related Issues On 12th April 2019
- PFRDA – Amendment To The Investment Guidelines
- Restore Old Pension Scheme
- NPS To OPS – Gazette Notification
- FAQ – NPS Additional Relief Scheme Beneficiaries
- Additional benefit on death/disability of Government servant covered by NPS
- NPS – 42 Questions And Answers To Know
- NPS Contribution 14% of Basic Pay plus DA – Gazette Notification
- Tripura Finance Department -NPS To Govt Employees