Reintroduction Of Onetime Pension Scheme

Agustus 11, 2018   Lok Sabha Q &A, Pension   Comment  

Reintroduction Of Old Pension Scheme

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA

UNSTARRED QUESTION NO. 4075

TO BE ANSWERED ON AUGUST 10, 2018/SHRAVANA 19, 1940 (SAKA)

REINTRODUCTION OF OLD PENSION SCHEME

Shri Rakesh Singh

Will the Minister of FINANCE endure pleased to state

the details of drawbacks of the New Pension Scheme (NPS) introduced for the Government officials;

whether the NPS is non equally beneficial monetarily equally the Old Pension Scheme (OPS) as well as if so, the details thereof;

whether the Government employees are disgruntled alongside the NPS as well as if so, the details thereof; and

whether the Government proposes to reintroduce the OPS replacing the NPS, if so, the details thereof as well as the activity taken yesteryear the Government inwards this regard?

ANSWER

The Minister of State inwards the Ministry of Finance

(Shri Shiv Pratap Shulda)

(a) & (b) National Pension System (NPS) has been designed giving utmost importance to the welfare of the subscribers. Government has made a witting motion to shift from the defined create goodness pension scheme to defined contribution pension scheme i.e. NPS, due to ascent as well as unsustainable pension bill. There are a lay out of benefits available to the employees nether NPS. Some of the benefits are enlisted below:

• NPS is a good designed pension organisation managed through an unbundled architecture involving intermediaries appointed yesteryear the Pension Fund Regulatory as well as Development Authority (PFRDA) viz. pension funds, custodian, cardinal tape keeping as well as accounting agency, National Pension System Trust, trustee bank, points of presence as well as Annuity service providers. It is prudently regulated yesteryear PFRDA which is a statutory regulatory trunk established to promote quondam historic catamenia income safety as well as to protect the involvement of subscribers of NPS.
• The pension wealth which accumulates over a catamenia of fourth dimension till retirement grows alongside a compounding effect. The all-in-costs of the institutional architecture of NPS are amid the lowest inwards the world.
• Contribution made to the NPS Tier-I line of piece of work concern human relationship is eligible for taxation deduction nether the Income Tax Act, 1961. An additional taxation rebate of Rs.50000 is likewise allowed for contributions made to NPS Tier-I nether Section 80CCD (1B) of the Income Tax Act, 1961.
• Subscribers tin withdraw upward to 25% of their ain contributions earlier attaining historic catamenia of superannuation, champaign of report to for sure conditions. Further, PFRDA vide “PFRDA (Exits as well as Withdrawals nether the NPS) (First Amendment) Regulations, 2017” dated 10.08.2017 has liberalized norms for partial withdrawals which likewise include reduction of requirement of minimum years of existence enrolled nether NPS from 10 years to iii years from the appointment of joining.
• PFRDA has increased the maximum historic catamenia trammel from sixty years to 65 years for joining NPS-All Citizen Model as well as Corporate Sector Model, vide “PFRDA (Exits as well as Withdrawals nether the NPS) (Second Amendment) Regulations, 2017” dated 06.10.2017.
• PFRDA vide “PFRDA (Exits as well as Withdrawals nether the NPS) (Third Amendment) Regulations, 2018” dated 02.2018 has facilitated tardily instruct out & withdrawal inwards illustration of disability as well as incapacitation of the subscriber covered nether NPS.
• Transparency as well as Portability is ensured through online access of the pension line of piece of work concern human relationship yesteryear the NPS subscribers, across all geographical locations as well as portability of employments.

(c) & (d) Representations induce got been received which inter alia likewise include the need that the Government may revert to quondam defined create goodness pension system. However, due to ascent as well as unsustainable pension nib as well as competing claims on the fiscal, at that spot is no proposal to supervene upon the NPS alongside quondam pension scheme inwards honour of Central Government employees recruited on or later 01.01.2004.