New Delhi, Aug 23: The Union Cabinet today approved a contributory pension scheme for government employees who have joined after October 2002. The new contributory pension scheme, managed by independent fund managers, has been mooted by the finance ministry for all government staff, as part of efforts to reduce government's pension liabilities, sources said.
Sources said one-tenth of the basic pay of government staff and dearness allowance will be deducted from their salary and put in the pension fund with the Centre making a matching contribution.
Government would mandate the proposed Pension Fund Regulatory and Development Authority to licence the new pension funds.
The new scheme follows the recommendations made by the B K Bhattacharya committee that went into Centre's own pension provisions. Bureau Report