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New Pension Scheme
The government of India (GOI) launched a brand new Pension System (NPS) in the year 2003. The NPS is related to all new personnel to Central Government service, but the armed forces, joining Government service on or after 1st January 2004. The States were invited to embrace NPS and also the majority of the States have already adopted NPS. NPS is also applicable to Central Autonomous Bodies (CABs) along with also the Autonomous Bodies / Grant Organizations of those States who’ve embraced NPS.
Under the plot, the Government will contribute Rs. 1, 000 each calendar year to each suitable NPS account started at the calendar year 2010- 11 and for the next few decades, which is, 2011-12,” 2012-13, and 201314. The benefit will probably be available simply to people who combine the NPS with a minimum donation of Rs. 1000 and also maximum participation of Rs. 12,000 per annum Conditions apply.
Underneath NPS, the way your funds is spent will depend upon your choice. NPS extends to you numerous fund managers (six) and multiple investment options (three) to choose from. In the event that you do not need to do an alternative as regards advantage allocation, then your money is going to be invested according to the”Automobile Option” selection.
You will be allocated a special Permanent Retirement Account Number (PRAN). This special account number will stay the same for the rest of your life. You are going to be able to use this particular account and this distinctive PRAN from any spot in India.
- PRAN will offer the use of just two personal accounts:
tier I retirement accounts: You may bring your financial savings for retirement in the non-withdrawable accounts. - Tier ii savings accounts: This can be simply a voluntary savings facility. You will be liberated to draw your cost savings out of these accounts whenever you wish.
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| Pages | 14 |
| Size | 2.80 MB |
| Language | English |
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