Government Introduces National Pension Scheme: Ensuring 50% Guaranteed Pension of Last Pay for Employees

The government is proposing to introduce a National Pension Scheme that will provide its employees with a guaranteed pension amount equivalent to approximately 50% of their last drawn pay. This initiative aims to ensure financial security for government employees during their retirement years. The scheme will likely be designed to provide a fixed percentage of the final salary as a pension, helping employees maintain a certain level of income post-retirement. The details of the scheme, including eligibility criteria, contribution rates, and other specifics, will be important factors in determining its effectiveness and impact on both government employees and the government’s finances.

(i) Whether in the light of the existing framework and structure of  the  National  Pension System, as applicable to Government employees, any changes therein are warranted;

(ii) If so, to suggest such measures as are appropriate to modify the same with a view to improving upon the pensionary benefits of Government employees covered under the National Pension System, keeping in view the fiscal implications and impact on overall budgetary space, so that fiscal prudence is maintained to protect the common citizens.