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Government Of India Scheme Notes – On Ministry Of Finance – For W.B.C.S. Examination.
ভারত সরকার প্রকল্পের নোট – অর্থ মন্ত্রণালয় – WBCS পরীক্ষা।
1. National Pension Scheme
• The government has approved a slew of measures under the National Pension Scheme(NPS).Continue Reading Government Of India Scheme Notes – On Ministry Of Finance – For W.B.C.S. Examination.
• Changes approved in the National Pension System:
o Mandatory contribution by the Central Government enhanced by 4
percent from the existing 10 percent to 14 percent for employees
covered under NPS Tier-I.
o Central government employees will be provided with freedom of choice
for selection of Pension Funds and pattern of investment.
o Payment of compensation for non-deposit or delayed deposit of NPS
contributions during 2004-2012.
o Contribution by Government employees under Tier-II of NPS will now be
covered under Section 80 C for deduction up to Rs 1.50 lakh for the
purpose of income tax at par with schemes such as General (PF),
Contributory PF, Employees PF and Public PF, with lock-in period of 3
years.
o The entire withdrawal will now be exempt from income tax as the tax
exemption limit for lump sum withdrawal on exit has been enhanced to
60 percent.
• Implications:
o The move is set to benefit around 36 lakh subscribers, including
approximately 18 lakh Central government employees covered under
NPS.
• What is National Pension System (NPS)?
o National Pension System (NPS) is a government-sponsored pension
scheme. It was launched in January 2004 for government employees.
However, in 2009, it was opened to all sections.
o The scheme allows subscribers to contribute regularly in a pension
account during their working life.
o On retirement, subscribers can withdraw a part of the corpus in a
lumpsum and use the remaining corpus to buy an annuity to secure a
regular income after retirement.
o This system is managed by PFRDA (Pension Fund Regulatory and
Development Authority).
o National Pension System Trust (NPST) established by PFRDA is the
registered owner of all assets under NPS.
• Who can join NPS?
o Any individual citizen of India (both resident and Non-resident) in the
age group of 18-65 years (as on the date of submission of NPS
application) can join NPS.
• Can a Non-Resident Indian (NRI) join NPS?
o Yes, an NRI can join NPS. However, the account will be closed if there is
a change in the citizenship status of the NRI.
o Contributions made by NRI are subject to regulatory requirements as
prescribed by RBI and FEMA from time to time.
o However, OCI (Overseas Citizens of India) and PIO (Person of Indian
Origin) card holders and HUFs are not eligible for opening of NPS
account.
2. Atal Pension Yojana (APY)
• The Finance Minister had announced a new initiative called Atal Pension Yojana (APY) in his Budget Speech for 2015-16.
• The APY will be focussed on all citizens in the unorganised sector and who are not members of any statutory social security scheme.
• Under the APY, subscribers would receive a fixed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY.
• The Central Government would also co-contribute 50% of the total
contribution or Rs. 1000 per annum, whichever is lower, to each eligible
subscriber account, for a period of 5 years, that is, from 2015-16 to 2019-20.
• The minimum age of joining APY is 18 years and maximum age is 40 years.
The benefit of fixed minimum pension would be guaranteed by the
Government.
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