PERDA working on minimum return scheme associated with NPS

USNMix Report: Preparation of Minimum Return Guarantee Scheme under NPS, 
Crores of people will benefit.

The PFRDA has sought opinion from insurance companies regarding the minimum return plans, developing and returning the amount of returns.

Pension Fund Regulatory and Development Authority, PFRDA is working on a minimum return scheme for those associated with the National Pension Scheme (NPS). There is a plan to save through NPS retirement contributions. It was managing assets of Rs 2.91 lakh crore till the end of January and the number of people associated with it was 1.21 million. According to a document of Pension Fund Regulatory and Development Authority (PFRDA), the regulator is working on developing a guarantee scheme of minimum returns for customers and preparing its design.

The regulator has asked the insurance companies to design tenders for developing, developing and suggesting the returns of the minimum return plan. The regulator has said that at least five years old governmental organization, government enterprise, partnership company, fixed debt partnership or private limited company can apply. Say, by increasing the contribution of the government in the National Pension Scheme (NPS) Has paid 14 percent of the salary. Union minister Arun Jaitley had said in the matter that the cabinet has made some changes in the NPS. The existing 10 percent contribution of the government has been increased to 14 percent. Apart from this, the withdrawal of 60 paise from the total amount of NPS will no longer be payable. Earlier this limit was up to 40 percent.

The important thing is that the minimum contribution of employees will remain only 10 percent. The Cabinet also approved tax incentives under Section 80C of Income Tax Act to contribute up to 10 percent of the employees. Currently, the contribution of government and employees is 10-10 percent in NPS. The minimum contribution of employees will remain at 10 percent while the contribution of the government has been increased from 10 percent to 14 percent.