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Modi Government 3.0 on Pension Scheme: Central employees may get a big gift in the new term of the Narendra Modi government. The government is planning to make a big increase in the pension benefits of central government employees under the National Pension System (NPS).
Under this, employees will get a guarantee of up to 50 percent of the last basic salary as pension. In simple language, 50 percent of the last basic salary of the employee before retirement will be given as monthly pension.
Panel to be formed in 2023
In fact, during the second term of the Narendra Modi government, a panel was constituted in March 2023 under the chairmanship of Finance Secretary TV Somanathan. This panel was formed to suggest ways to increase pension benefits under NPS for government employees without returning to the Old Pension System (OPS). The government took this decision at a time when many states have started abandoning NPS and returning to OPS.
Mention of Andhra Pradesh model
According to the news of Financial Express, the panel has submitted its report to the government in the month of May. This report is largely influenced by the Andhra Pradesh NPS model implemented in 2023. It can be called a mixed model of old and new pension scheme. Under the Andhra Pradesh Guaranteed Pension System (APGPS) Act, 2023, government employees will be given 50 percent of their last salary as monthly pension. This will also include dearness relief i.e. DR. Apart from this, the spouse of the deceased employee is guaranteed a monthly pension of 60 percent of the guarantee amount.
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What does this proposal of NPS say?
Under the new proposal, central employees will get a guaranteed pension of up to 50 percent of the last basic salary. Any shortfall in the pension fund required to meet the guaranteed pension amount will be covered from the central government budget. This can benefit about 8.7 million central and state government employees. These will be employees who have been registered in NPS since 2004.
