Cabinet approves the proposal for streamlining the National Pension System (NPS)

NewsBharati    10-Dec-2018
Total Views |





New Delhi, Dec 10: Cabinet approves the proposal for streamlining the National Pension System (NPS).

Under #NationalPensionScheme mandatory contribution by the Central Government for its employees covered under NPS Tier-I increased from existing 10% to 14%.Tax exemption limit for lump sum withdrawal on exit enhanced to 60%: FM @arunjaitley

Finance Minister Arun Jaitley said while addressing a press conference in New Delhi elaborated about the decision taken by the cabinet. He said, 
Employees who are in service after 1-1-2004, are eligible for getting new pension scheme and in this new pension scheme Some changes have been made in the larger interest of the employee. According to the scheme earlier, 10% was contributed by Employee himself and 10% by the government. That means employee get 20% corpus, concern person gets post-retirement basis. 

Jaitly further explained the decision which states that in this new scheme employee share will be 10% but the central government share has increased from 10% to 14%. So there is a 4% increase in the contribution of Central Government. So the corpus now will be 24% of which 14% will be contributed by the government. In cases where NPS is not deposited between 2004 and 2012 to bring them at par, a contribution will be given accordingly.
National Pension Scheme Cabinet decision Arun Jaitley