Lets Talk :(+91) 9892162702
back
Articles

Small Saving Schemes - Pension benefits under NPS on voluntary retirement: 5 things to know
14-Oct-2019
fjrigjwwe9r3SDArtiMast:ArtiCont

NPS is applicable to all central government employees (except Armed Forces) who had joined services on or after 1st January 2004. Later from May 2009, NPS was extended for all citizens of the country including the unorganised sector workers on voluntary basis with the objective of providing a retirement income, depending on their contributions. Earlier this year, for central government employees covered under NPS Tier-I, the mandatory contribution by the central government was increased from 10% of basic pay + dearness allowance to 14% of basic pay + dearness allowance.

The employees’ contribution rate remained the same at existing 10% of basic pay + dearness allowance.

Here are five things to know about pension benefits under NPS on voluntary retirement for government employees:

2) According to the NPS rules, if a government employee before attaining the age of retirement prescribed by the service rules applicable to him or her, voluntarily retires or exits, then at least 80% out of the accumulated pension wealth of the subscriber will have be mandatorily used for purchase of annuity.

3) An annuity is a financial instrument which provides a regular payment of a certain amount of money on monthly/quarterly/annual basis, depending on the chosen time period and the accumulated kitty.

4) The balance of the accumulated kitty in NPS will be paid to the subscriber in lump sum.

Source : Live Mint back

Contact Us

SABOO CONSULTANCY:
201,2nd Floor,Samarth House,opp.Kali Mata Mandir,
Bangur Nagar,Goregaon(West),Mumbai-400104, India.

sabooinsurance@gmail.com
saboo_lic@rediffmail.com
Mob.:(+91) 9892162702

Keep In Touch