New Pension System To Old Pension Scheme
Major Change in NPS
Govt Contribution Raised to 14%
New Pension Scheme to Old Pension Scheme: As per the media news, the Union Cabinet approved on Thrusday(6.12.2018) to raise the contribution to National Pension Scheme (NPS) to 14 per cent.
Major Changes has been inititated by the Central Government in the exisiting National Pension Scheme applicable for the employees joined on or after 1.1.2004 in Central Govenment Services. The minimum contribution is now 10% of basic pay. The Government contribution may be raised to 14% of basic pay.
At present, the monthly contribution amount would be 10% of the salary and dearness allowance (DA) to be paid by the employee and matched by Government. The Cabinet Committee also approved to increase the commutation percentage from 40% to 60%.