New Initiative

Recent initiatives by the Central Government for streamlining NPS for its employees :

(i) Enhancement of the mandatory contribution by the Central Government under NPS from the existing 10% to 14% for its employees.

(ii) Providing choice for choosing Pension Fund Manager (PFM) and Investment pattern from among the (a) existing default scheme, (b) 100 investment in Government securities, (c) Life Cycle -25 and (d) Life Cycle -50.

(iii) Compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012.

(iv) Increase in the limit of income tax exemption from current 40% to 60% of payment on final withdrawal from NPS.

(v) Allowing deduction for employer’s contribution upto 14% of salary from current 10%, in case of Central Government employee.

(vi) Allow deduction under section 80C for contribution made to Tier II NPS account by Central Government employees.