Hi all! Could anyone tell me about New Pension Scheme (NPS) and how it will be implemented in Public Sector Companies? Whether we will be eligible for gratuity or not after that?
From India, Calcutta
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From India, Calcutta
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Understanding the Employees' Pension Scheme 1995
The Employees' Pension Scheme 1995 is a part of the Employees' Provident Fund and Miscellaneous Provisions Act and has replaced the erstwhile Family Pension Scheme. (For more details, please refer to the relevant threads already posted on citeHR).
Gratuity and pension are independent and separate benefits. Therefore, your eligibility to receive gratuity will not be affected by pension.
Regards,
Abbas.P.S
From India, Bangalore
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530The Employees' Pension Scheme 1995 is a part of the Employees' Provident Fund and Miscellaneous Provisions Act and has replaced the erstwhile Family Pension Scheme. (For more details, please refer to the relevant threads already posted on citeHR).
Gratuity and pension are independent and separate benefits. Therefore, your eligibility to receive gratuity will not be affected by pension.
Regards,
Abbas.P.S
From India, Bangalore
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Hi Abbas, thanks for your reply, but actually, I am asking about the New Pension Scheme which has been implemented since January 2004. In this scheme, employees who have joined the organization on or after January 2004 will be included, and they have to contribute 10% of their basic salary and DA every month to the Pension fund. The concept of the Provident Fund won't be applicable to such employees.
If anybody has some experience regarding this matter or any kind of knowledge about it, kindly discuss.
From India, Calcutta
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If anybody has some experience regarding this matter or any kind of knowledge about it, kindly discuss.
From India, Calcutta
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Introduction of the New Pension Scheme
The New Pension Scheme was introduced with effect from 01 January 2004, as per Notification 5/7/2003-ECB&PR issued on 22 December 2003 by the ECB&PR Division of the Department of Economic Affairs, Ministry of Finance, Government of India.
It is an initiative to minimize the burden of pension wealth on the Government Sector. Under this scheme, an employee has to contribute 10% of their salary (basic + GP + NPA, if any) every month. The government will also make a matching contribution, and the entire amount is to be deposited with the Trustee Bank (Bank of India) by the employer. NSDL has been appointed as the record-keeping agency for all pension information.
The money is then divided among the Pension Fund Managers (PFMs), who are responsible for buying assets (bonds, securities, etc.) with the money. Subscribers can choose their PFM/PFMs, and the ratio of distribution can be adjusted from time to time.
From India, Guwahati
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The New Pension Scheme was introduced with effect from 01 January 2004, as per Notification 5/7/2003-ECB&PR issued on 22 December 2003 by the ECB&PR Division of the Department of Economic Affairs, Ministry of Finance, Government of India.
It is an initiative to minimize the burden of pension wealth on the Government Sector. Under this scheme, an employee has to contribute 10% of their salary (basic + GP + NPA, if any) every month. The government will also make a matching contribution, and the entire amount is to be deposited with the Trustee Bank (Bank of India) by the employer. NSDL has been appointed as the record-keeping agency for all pension information.
The money is then divided among the Pension Fund Managers (PFMs), who are responsible for buying assets (bonds, securities, etc.) with the money. Subscribers can choose their PFM/PFMs, and the ratio of distribution can be adjusted from time to time.
From India, Guwahati
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Please go through the following links, which will help you understand the complete details:
- [New Pension Scheme India (NPS) Details](http://www.onemint.com/2010/09/27/a-primer-on-the-new-pension-scheme-nps/)
- http://pfrda.org.in/
All the best.
From India, Kumbakonam
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- [New Pension Scheme India (NPS) Details](http://www.onemint.com/2010/09/27/a-primer-on-the-new-pension-scheme-nps/)
- http://pfrda.org.in/
All the best.
From India, Kumbakonam
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Employee Pension Scheme, 1995.doc
Form10C.PDF for Employee Pension Scheme 1995.PDF