New Delhi: The authorities on Friday introduced {that a} committee beneath the finance secretary might be set as much as enhance the New Pension System (NPS) with a view to deal with the issues of staff whereas sustaining fiscal prudence.
While transferring the Finance Bill 2023 for consideration and passage within the Lok Sabha, finance minister Nirmala Sitharaman mentioned that the brand new strategy to the NPS might be designed for adoption by each central and state governments.
“I propose to set up a committee under the finance secretary to look into the issue of pensions and evolve an approach which addresses the needs of employees while maintaining fiscal prudence to protect common citizens,” she mentioned.
“The approach will be designed for adoption by both the central government and state governments,” she mentioned.
The determination comes within the backdrop of a number of non-BJP states deciding to revert to the DA-linked Old Pension Scheme (OPS) and in addition worker organisations in another states elevating demand for a similar.
The state governments of Rajasthan, Chhattisgarh, Jharkhand, Punjab and Himachal Pradesh have knowledgeable the Centre about their determination to revert to the Old Pension Scheme and have requested a refund of corpus gathered beneath the NPS.
Earlier this month, the central authorities knowledgeable Parliament that it isn’t contemplating any proposal to revive the OPS in respect of the central authorities staff recruited after January 1, 2004.
Under the OPS, retired authorities staff obtained 50 per cent of their final drawn wage as month-to-month pensions. The quantity retains rising with hike within the DA charges. OPS just isn’t fiscally sustainable as it isn’t contributory in nature and the burden on exchequer retains on mounting.
The whole belongings beneath administration beneath the National Pension System and Atal Pension Yojana stood at Rs 8.81 lakh crore as on March 4, 2023.
NPS has been carried out for all authorities staff besides these in armed forces becoming a member of central authorities on or after 1st of January 2004. Most of the state/ Union Territory governments have additionally notified the NPS for his or her new staff.
According to the PFRDA (Pension Fund Regulatory and Development Authority), 26 state governments, aside from Tamil Nadu and West Bengal, have notified and carried out NPS for his or her staff.
NPS has been made obtainable to each Indian citizen from May 1, 2009 on a voluntary foundation.
Further, on June 1, 2015, the Atal Pension Yojana has been launched which has given the a lot required impetus to the social safety schemes.
To regulate and develop the pension market, the federal government created PFRDA in 2003. It was initially designed for presidency staff completely, however its companies have been subsequently expanded to incorporate all Indian nationals and NRIs, together with self-employed individuals.
PFRDA promotes, develops and regulates organised pension funds; specifically National Pension System (NPS) to serve the outdated age earnings wants of individuals on a sustainable foundation.
Source: zeenews.india.com
