The Bharatiya Janata Party-led National Democratic Alliance government plans to enhance pension benefits for central government employees under the National Pension System (NPS). The proposal aims to guarantee up to 50% of the last basic pay as a pension, shifting from the current market-based returns system. A committee led by Finance Secretary T V Somanathan was formed in March 2023 to explore this without reverting to the fiscally unsustainable Old Pension System (OPS). The committee’s report, submitted in May, aligns with the Andhra Pradesh Guaranteed Pension System (APGPS) model, which ensures a minimum pension of 50% of the last drawn pay and adjustments based on inflation.
India to Enhance Pension Benefits for Government Employees under NPS
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