Wednesday, September 21, 2016
Benefits of New Pension Scheme NPS
Benefits of New Pension Scheme NPS
New Pension Scheme (NPS)
What is New Pension Scheme ?
New Pension scheme (NPS) is the pension scheme which is introduced by the Central Government of India for its employees who join the Central Government organizations on or after 2004. NPS is also called as "Contributory Pension Scheme". Earlier to NPS, there is a Defined Pension scheme in which a defined amount of Pension will be given to employees as a monthly salary after their retirement.
How much amount will be deducted from your Salary under New Pension Scheme (NPS)?
In NPS 10% of your basic salary will be deducted and the same amount will be added to your NPS account from the government side. The total amount will be invested into the share market under the supervision of NPRDA.
Types of Investment in NPS
There are two types of investment choices in the NPS. First one will be the auto choice in which based on the age of an employee investment will be made and the second will be active choice. In active choice, A employee can suggest how much amount will be invested in all the three class E, G & C. (E-Equity, G-Government Securities, C - Investment in fixed income groups other than Government)
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