Lagatar24.com
Language : HINDI
  • Home
  • Jharkhand
  • Bihar
  • National & World
  • Business
  • Health & Lifestyle
  • Sports
  • Entertainment
  • Career
  • Tech – Gyan
  • Opinion
Friday, 11 July, 2025
Lagatar24.com
  • Home
  • Jharkhand
  • Bihar
  • National & World
  • Business
  • Health & Lifestyle
  • Sports
  • Entertainment
  • Career
  • Tech – Gyan
  • Opinion
Lagatar24.com
No Result
View All Result
  • Home
  • Jharkhand
  • Bihar
  • National & World
  • Business
  • Health & Lifestyle
  • Sports
  • Entertainment
  • Career
  • Tech – Gyan
  • Opinion
Home Lagatar News

Centre Considers Guaranteeing 50% of Last Drawn Salary as Pension Under NPS

Proposal Aims to Address Disparities Between NPS and Old Pension Scheme

Lagatar News by Lagatar News
July 10, 2024
in Lagatar News, National & International
Share on FacebookShare on Twitter

Lagatar24 Desk

New Delhi: The central government is contemplating a new policy to guarantee 50% of the last drawn salary as a pension to its employees under the National Pension System (NPS). This move seeks to address concerns over payout disparities between the NPS and the Old Pension Scheme (OPS), according to a report by The Times of India.

The initiative follows the establishment of a committee led by Finance Secretary T V Somanathan to assess the implications of this decision, which was first announced by Finance Minister Nirmala Sitharaman last year.

While the NPS is known for providing high returns for employees who remain invested for 25-30 years, the disparity in pension payouts compared to the OPS has been a significant issue. The OPS guarantees a lifelong pension payout of 50% of the last drawn salary, adjusted according to Pay Commission recommendations. Conversely, the NPS is a market-linked, defined contribution scheme, with employees contributing 10% of their basic salary and the government contributing 14%.

A segment of central government employees has been advocating for a guaranteed 50% of the last pay drawn for those who serve 25-30 years. Although the Centre has ruled out a return to the OPS, it is now considering providing some level of assurance in the pension payout.

The Somanathan committee has studied global practices and conducted extensive calculations to understand the economic impact of offering assured returns. The committee suggested that while a 40-45% guarantee could be feasible, the 50% payout assurance was not explicitly mentioned. This implies that the government might need to step in to bridge the gap.

To ensure the financial sustainability of this decision, the Centre is also reportedly planning to establish a dedicated fund similar to corporate retirement benefits. Several rounds of discussions have been conducted to evaluate different aspects of the proposal, aiming to balance fiscal prudence with employee welfare.

Share76Tweet47
Previous Post

ED Alleges Delhi CM Kejriwal as ‘Kingpin’ in Excise Policy Scandal

Next Post

Russia Clarifies Stance on Recruitment of Indians in Its Army

Related Posts

Gajar Ka Halwa Steals the Show on Space Party as Astronauts Relish Taste of India

Gajar Ka Halwa Steals the Show on Space Party as Astronauts Relish Taste of India

July 11, 2025
Air India Crash Probe Nears Key Milestone, Preliminary Report to Reveal Possible Causes and Final Moments

Air India Crash Probe Nears Key Milestone, Preliminary Report to Reveal Possible Causes and Final Moments

July 11, 2025
Retirement Age Debate: Congress Uses RSS Chief Mohan Bhagwat’s Remark to Target PM Modi, Who Turns 75 This Year

Retirement Age Debate: Congress Uses RSS Chief Mohan Bhagwat’s Remark to Target PM Modi, Who Turns 75 This Year

July 11, 2025
“Show Me One Photo”: NSA Ajit Doval Challenges Foreign Media Over Operation Sindoor Reports

“Show Me One Photo”: NSA Ajit Doval Challenges Foreign Media Over Operation Sindoor Reports

July 11, 2025
Bihar Voter List Revision to Proceed, Supreme Court Suggests Aadhaar, Ration Card, and Voter ID Be Accepted

Bihar Voter List Revision to Proceed, Supreme Court Suggests Aadhaar, Ration Card, and Voter ID Be Accepted

July 10, 2025
Kharge Slams Modi Government, Says Governance Reduced to “Speeches and Advertisements”

Kharge Slams Modi Government, Says Governance Reduced to “Speeches and Advertisements”

July 10, 2025
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • About Editor
  • Advertise with us
  • Privacy Policy
  • Contact Us

© 2024 Lagatar News (Lagatar24.com)

No Result
View All Result
  • Home
  • Jharkhand
  • Bihar
  • National & World
  • Business
  • Health & Lifestyle
  • Sports
  • Entertainment
  • Career
  • Tech – Gyan
  • Opinion

© 2024 Lagatar News (Lagatar24.com)