7th Pay Commission Latest News: The central government is likely to bring changes in New Pension Scheme also known as National Pension Scheme for employees, who are waiting for a hike in minimum pay and fitment factor beyond 7th Pay Commission recommendation. The notification is likely to be announced next week.
Reportedly, the employees will be receiving over 50 per cent of the last drawn salary as pension under this scheme after their retirement. And once in three years, they will be allowed to withdraw money for various needs.
(7th Pay Commission: 6-month Arrears Approved For Government Employees)
As per media report, the government has not changed the name of the pension scheme and has still kept its name as New Pension Scheme.
Earlier, Union Finance Minister Arun Jaitley had said that commission should be constituted to overlook the NPS for the central employees. The commission had recommended that withdrawal under NPS should be tax exempt.
The government is planning to increase its contribution to employees 10 14 per cent which is 10 per cent currently.
Reportedly, Indian Public Service Employees Federation had said that if the Centre fails to fulfil their promise by end-January then the employees will kick-off a pan-India agitation.
What is NPS?
The National Pension Scheme (NPS) is a government sponsored scheme for government employees. It was launched in January 2004. However, in the year 2009, it was opened up to all sections. On the basis of 7th Pay Commission recommendation, a committee of secretaries was set up which submitted its report in 2018. The Union Cabinet approved the decision of hiking Centre’s contribution to NPS on the basis of the draft.