Nonetheless, in response to an ET report, this affect could also be mitigated if the NPS is designated to handle the particular person pension fund, which is without doubt one of the two funds proposed underneath the UPS.
The person fund will comprise the worker contribution, amounting to 10% of fundamental pay and dearness allowance, together with an identical contribution from the federal government.
Pension Scheme Subscribers
An extra authorities contribution of 8.5% of fundamental and DA for all workers will probably be maintained in a separate fund.
Presently, the NPS has 2.65 million central authorities subscribers, representing 27.1% of the scheme’s complete corpus of Rs 12.8 lakh crore. The destiny of this corpus stays unsure as central authorities workers transition to the UPS, the monetary day by day’s report mentioned.
The implementation of the brand new scheme is about to begin from April 1, 2025. If state governments additionally introduce UPS-like schemes and supply NPS subscribers with the selection to change, the affect can be much more important.
Additionally Learn | Unified Pension Scheme vs OPS vs NPS: How is UPS different from National Pension Scheme, Old Pension Scheme?
The NPS at present has 6.7 million subscribers from states, accounting for 49.4% of the full scheme corpus. Collectively, state and central authorities workers make up greater than three-quarters of the scheme’s corpus, in response to the newest information. The company sector subscribers quantity to 2.1 million, with a complete corpus of Rs 1.89 lakh crore, constituting 14.8% of the full.
The scheme gives tax advantages on contributions, and upon maturity, 60% of the corpus might be withdrawn tax-free, whereas the remaining stability have to be used to buy an annuity.
