Meanwhile, the Government has cleared the air about the old pension scheme and said that it has no plan to roll back.
The Centre ruled out any possibility of replacing the new pension scheme (NPS) with the old pension scheme (OPS) that was in force before 2004.
Union Finance Minister Nirmala Sitharaman proposed the cabinet decision taken to incentivise National Pension System (NPS) while presenting the union budget.
She proposed to increase the limit of exemption from the current 40% to 60% of payment on final withdrawal from NPS and to allow deduction under section 80C for the contribution made to Tier II NPS account by Central Government employees.
She also proposed to allow a deduction for the employer’s contribution up to 14% of salary from the current 10%, in the case of Central Government employee.