Sir,
I am regularly reading the blog.
Recently I am reading the comments regarding Bank Settlement and its effect on pensioners.
- I think it is natural that the existing employees will not take care for pensioners. If this is the position now what will happen
when majority of existing employees are covered under New Pension Scheme? Will not there be anomaly of pension amount amongst those retiring in
the same rank? Have the pensioners thought of
this anomaly?
- Therefore, priority of demand and struggle
should be to scrap the New Pension Scheme and to cover all employees in
D.A.linked benefit purchase pension scheme the benefit of which we
enjoy now.
Shri SN (1992 pensioner) has made available the following
additional information on New Pension Scheme.
Public
Sector Bank(PSB) employees pension scheme :
Public Sector Banks employees, who have joined on or after 1.4.2010 are
covered under New Pension Scheme (NPS) and , the employees of State
Bank of India, who have joined on or after 1.8.2010 are covered under
New Pension Scheme (NPS).
The
below detailed information was presented as a written reply to a
question in Lok Sabha by the Minister of State for Finance Shri.Namo
Narain Meena on 8.3.2013.
"Most
of the employees of various Public Sector Banks (PSBs) are covered
under Bank Employees Pension Regulations pronounced in 1995. Employees
who did not opt for pension scheme are continuing under Contributory
Provident Fund. Employees who have joined on or after 1.4.2010 are
covered under New Pension Scheme (NPS). Employees of State Bank of India
are covered under SBI Pension Fund Rules which came into existence in
1955. Employees joining State Bank of India on or after 1.8.2010 are
covered under New Pension Scheme (NPS).
Employees
of Regional Rural Banks cannot be included in the prevailing Pension
Schemes of the PSBs since they belong to different organisations.
National
Bank for Agriculture and Rural Development( NABARD) has framed a draft
Model Pension Scheme and Regulations on the above lines for introducing
pension for RRBs which envisages RRBs to decide on introduction of
pension for its employees at par with nationalised banks taking inter
alia their financial position into consideration".
You might also like:
Linkwithin
Defined Contribution Pension Scheme (New Pension Scheme)
(Salient Features) |
|
- The
New Pension Scheme works on defined contribution basis and will have
two tiers � Tier-I and II.� Contribution to Tier-I is mandatory for all
Government servants joining Government service on or after 1-1-2004
(except the armed forces in the first stage), whereas Tier-II will be
optional and at the discretion of Government servants.
- In
Tier-I, a Government servant will have to make a contribution of 10% of
his basic pay plus DA, which will be deducted from his salary bill
every month by the PAO concerned.� The Government will make an equal
matching contribution.� However, there will be no contribution from the
Government in respect of individuals who are not Government employees.
- Tier-I
contributions (and the investment returns) will be kept in a
non-withdrawable Pension Tier-I Account.� Tier-II contributions will be
kept in a separate account that will be withdrawable at the option of
the Government servant.� Government will not make any contribution to
Tier-II account.
- The
existing provisions of Defined Benefit Pension and GPF would not be
available to� the new recruits in the central Government service, i.e.
to the Government servants� joining Government service on or� after�
1-1-2004.
- In
order to implement the Scheme, there will be a Central Record Keeping
Agency (CRA) and several Pension� Fund Managers (PFM) to offer three
categories of Schemes to Government servants, viz., options A,B and C
based on the ratio of investment in fixed income instruments and
equities. The participating entities (PFMs and CRA) would give out
easily understood information about past performance, so that the
individual would be able to make informed choices about which scheme to
choose.�
- �An independent Pension Fund Regulatory and Development Authority (PFRDA) will regulate and develop the pension market.
- As
an interim arrangement, till such time the Statutory PFRDA is set up,
an interim PFRDA has been appointed by issuing an executive order by M/o
Finance (DEA).
- Till
the regular Central Record Keeping Agency and Pension Fund Managers are
appointed and the accumulated balances under each individual account
are transferred to them, such amounts representing the contributions
made by the Government servants and the matching contribution made by
the Government will be kept in the Public Account of India.� This will
be purely a temporary arrangement as announced by the Government.
- Tier-II will not be made operative during the interim period.
- A
Government servant can exit at or after the age of 60 years from the
Tier-I of the Scheme.� At exit, it would be mandatory for him to invest
40 per cent of pension wealth to purchase an annuity (from an
IRDA-regulated Life Insurance Company) which will provide for pension
for the lifetime of the employee and his dependent parents/spouse.� He
would receive a lump-sum of the remaining pension wealth which he would
be free to utilize in any manner.��� In the case of Government servants
who leave the Scheme before attaining the age of 60, the mandatory
annuitization would be 80% of the pension wealth.
Related Links (in this Portal) :
1. Government of India Gazette Notification F. No. 5/7/2003-ECB&PR dated 22/12/2003.
2. FAQs about the New Pension Scheme |
