National Pension System: Are you in the central service and are you worried about retirement, Then there is good news for you. The government is preparing to make a bang in your pension, which will completely change your retirement life.
With the stormy changes coming in the National Pension System (NPS), you can get half of your last salary as a pension after retirement.
News that created a stir in NPS
Actually, in the second term of the Modi government itself, a panel was formed under the chairmanship of Finance Secretary T.V. Somanathan.
The job of this panel was to suggest changes in NPS, that too without bringing the old pension scheme (OPS). This decision was necessary because many states were returning to OPS.
Half salary as pension
The news is coming that the committee has submitted its report to the government. And there is something in this report that will make the central employees lose sleep.
According to the proposal, the pension you get after retirement can be almost half of your last salary! That is, if your previous salary was Rs 50 thousand per month, then you can get a pension of about 25 thousand rupees every month.
However, your length of service and the amount withdrawn earlier will also be taken into account. But the biggest thing is that if there is a reduction in pension, the government will make up for it from its own pocket.
A glimpse of Andhra Pradesh model
According to reports, the panel has given its report to the government. In this report, Andhra Pradesh’s NPS model is seen to be quite impressive. This is a mixed model of the old and new pension system.
In Andhra Pradesh, employees are getting a 50 percent pension of the last salary along with dearness allowance. Not only this, on the death of the employee, the wife will also get 60 percent of the pension.
87 lakh employees will benefit
According to the new proposal, central employees will get a pension guarantee of up to 50 percent of the last basic salary.
The reduction in pension will be borne by the government. About 87 lakh central and state employees can benefit from this.
These are the employees who have been in NPS since 2004. Keep in mind, that this amount will keep increasing with the rise in inflation.
The government says that the burden on OPS is too high, so changes in NPS are necessary.