After the bonanza of Sixth Pay commission, the Govt has gone a step ahead and announced to launch a new pension scheme for employees of private sector, self employed and extended it to everyone in the country. The Pension Fund Regulatory Development Authority (PFRDA) has decided to bring in some changes in the new pension scheme with effect from May 1, 2009.
The new pension scheme(NPS) will allow the fund investment of nearly 50% in the high risk stock markets. Meena Chaturvedi, the Executive Director(ED) of Pension Fund Regulatory Development Authority (PFRDA) confirmed the developments and said that it would be effective from May 1st 2009 onwards. Due to the elections, the new pension scheme was delayed since April 1, 2009.
Six major fund managers were shortlisted for the new pension scheme in the month of February. They include Reliance Capital,ICICI Prudential Life Insurance,State Bank of India,Kotak Mahindra Bank,UTI,IDFC. An expert panel was formed under the guidance of HDFC chairman Deepak Parekh to look into the matters of new pension scheme.
The PFRDA has made a strict limit of investment of only 50% in the stock markets of the pension funds. Even the default choice where the persons do not take any call on the percentage of their funds to go into the stock markets will have a cap of maximum 50%. The board has said that the cap would be reviewed a year later and appropriate decision would be taken in this regard. Get a more clear view of the New Pension Scheme here.
The PFRDA committee has also suggested that the funds when withdrawn should be tax free to give maximum benefit to the users. We know that returns from PPF, EPF and GPF are exempted from Tax at withdrawal. When the age of the user reaches 60 years, only 10% of his funds would be put into the stock markets and rest all in save investment avenues like Govt bonds which are less risky. The new pension scheme(NPS) has been made mandatory for all the Govt employees who have joined the service after January 1, 2004.The coming govt will have to take some concrete steps in regard to the new pension scheme. So we need to wait and watch the policies of the new Govt at the center which would be formed very soon. Check out the complete package of information and all the links to get started with New Pension Scheme India and PFRDA .
We are Co_op Society falles under Boards/ Corporation category and Employees Provident Fund Scheme is being extended to our employees. There is No pension on retirement.
Now some one has approached with us the as per the Provisions of the NEW PENSION SCHEME w e f 1-1-2006 all the Boards carp oration have to implement NEW PENSION SCHEME AND STOP E.P.F CONTRIBUTION FOR THE EMPLOYEES JOINED AFTER 1-1-2006 OTHERWISE THERE IS PENELTY FOR THIS
Please guide us
From India, Chandigarh
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