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New pension scheme for govt employees begins today
New Delhi, Jan 01: The government has appointed a private consultant, India Invest Economic Foundation, to operationalise the new pension scheme starting from today.
New Delhi, Jan 01: The government has appointed a
private consultant, India Invest Economic Foundation, to
operationalise the new pension scheme starting from today.
The new 'defined-contributory' pension scheme would be
applicable to new recruits excluding defence personnel, and
has three investment options – debt, equity, and balanced
fund.
The government opted for the new scheme as part of the efforts to reduce its pension liability, which has been ever increasing, particularly on account of the rise in life expectancy and the implementation of the fifth pay commission that provided a dearness allowance-linked pension.
The Central government appointed IIEF for 12 months to assist the department of economic affairs under Ministry of Finance and the newly set up interim Pension Fund Regulatory and Development Authority (PFRDA) in rolling out the new pension scheme, IIEF managing director Gautam Bharadwaj told reporters here.
IIEF, a private agency, had earlier been assigned by the World Bank to commission research on India's pension sector.
To begin with, the new pension scheme would be offered to government employees and later to private-sector workers and the self-employed.
The new regime envisages that 10 per cent of an employees's salary goes to pension along with a matching contribution from the government.
Bureau Report
The government opted for the new scheme as part of the efforts to reduce its pension liability, which has been ever increasing, particularly on account of the rise in life expectancy and the implementation of the fifth pay commission that provided a dearness allowance-linked pension.
The Central government appointed IIEF for 12 months to assist the department of economic affairs under Ministry of Finance and the newly set up interim Pension Fund Regulatory and Development Authority (PFRDA) in rolling out the new pension scheme, IIEF managing director Gautam Bharadwaj told reporters here.
IIEF, a private agency, had earlier been assigned by the World Bank to commission research on India's pension sector.
To begin with, the new pension scheme would be offered to government employees and later to private-sector workers and the self-employed.
The new regime envisages that 10 per cent of an employees's salary goes to pension along with a matching contribution from the government.
Bureau Report