Good News for Employees: Increased Pension Benefits
Public servants can now smile as the laws dealing with pensions have been altered in their favor. Miners and related workers, drawfact staff and refugees will be among more than 500,000 pensioners and employees who will receive improved retirement benefits. The equity limit relating to pension funds has being brought from 15% to between 25% and 50% to make it possible for pension benefits to be increased.
New Opportunities for Fund Managers
Some of the freedoms include, Pension freedoms where employees can opt to take their pension fund manager of choice. This change implies that instead of being limited by the few fund managers such as SBI, UTI and LIC the employees can chose from the pension fund manager of their choice once they are retired. Such flexibility presumably is intended to help them build as much money as possible toward their retirements.
New Pension Rule Regulations
It is available online and the finance department has sent circulars to all the district collectors, divisional commissioners as well as the head of the respective departments. According to these instructions, employees in the government with NPS can choose their fund managers and other investments.
Integrated Investment Choices
Earlier the options available for the employees were very limited and they could only invest in SBI, UTI and LIC. According to the new rules, employees have the ability to invest in furthermore companies, expanding investment opportunities. This update will be favorable for individuals who have entered the state service after 2005 or All India Service after the year 2004.
Once a Year Selection per Financial Year
It allows the employees to select an option of his/her own pension fund manager out of the list that is registered PFRDA. This option is available only once in the given fiscal year. If nothing is decided, the existing status quo will be kept as a default mechanism.
