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Tag: pension

  • Gross Enrolments Under Atal Pension Yojana Cross 7 Crore Mark, With Over With Over 56 Lakh Enrolments In Current Financial Year 2024-25 | Personal Finance News

    New Delhi: The total gross enrolments under the Atal Pension Yojana (APY) have crossed 7 crore, with an enrolment of over 56 lakh in the current Financial Year 2024-25, said an official release.

    The scheme is in its 10th year of rollout, and has achieved a big milestone by bringing in the most vulnerable sections of society under the coverage of pension has been made possible with the untiring efforts of all the Banks and SLBCs/UTLBCs, Ministry of Finance said.

    “The Pension Fund and Regulatory Development Authority (PFRDA), in the recent past, has taken several initiatives for awareness creation of the scheme i.e., conducting APY Outreach Programmes at State and District levels, organising awareness and training programmes, publicity through various media channels, releasing a one-pager simple APY flyer/handout in Hindi, English, and 21 regional languages, and regular performance review,” it added.

    APY has been designed in such a way that it provides Sampurna Suraksha Kavach to not only the subscriber by providing a life-long defined and guaranteed pension amount, but also to the spouse by providing the same pension amount after the demise of the subscriber and then to the family by returning the entire corpus (accumulated till the age of 60 years) to the nominee after the death of the subscriber and spouse.

    The APY is a flagship social security scheme of the Government of India, was launched on 9th May 2015 with an aim to create a universal social security system for all Indians, especially the poor, the underprivileged and the workers in the unorganised sector.

  • Finance Ministry’s BIG Step For Central Govt Pensioners; Issues THIS Directives To Banks | Personal Finance News

    New Delhi: In a big step towards addressing the grievances of central government employee pensioners, the finance ministry has issued a directive to the banks asking them to credit money by end of every month.

    The finance ministry in an office memorandum (OM) has directed banks to ensure timely disbursement of pensions and family pensions.

    “Attention is invited to the provisions contained in Scheme for Payment of Pensions to Central Government Civil Pensioners by Authorized Banks’, according to which authorised banks’ Centralized Pension Processing Centers (CPPCs) of authorized anks are to credit the monthly pension/family pension in the account of pensioner/family pensioner by the last working day of the month to which they relate except for the month of March for which it should be credited on the first working day of the succeeding month i.e. April,” said the finance ministry.

    The Ministry’s OM stated that the delay in credit of pension/family pension is being seen in a serious light by it, warning that any lackluster on the issue might lead to necessary action.

    “The delay in credit of pension/family pension has been viewed very seriously. The CPPCs are hereby instructed to ensure that the monthly pension/family pension is credited in the pensioner’s/family pensioner’s account every month as per prescribed timelines. Any delay, in credit of pension/family pension beyond prescribed timelines, will be viewed very seriously and necessary action, as deemed fit, will be taken,” it added.

    In order to monitor timely disbursement of pension/family pension all Centralized Pension Processing Centers (CPPCs) are instructed to furnish a report regarding the crediting of pensions of the monthly pension electronically invariably by the forenoon  of the last working day each month, said the ministry.

  • Govt Mulling Hiking EPFO Salary Cap To From Rs 15,000 To Rs 21,000 — Calculate How You Can Retire With Rs 1 Crore Corpus | Personal Finance News

    New Delhi: Union Labor Minister Mansukh Mandaviya has said the government is considering increasing the monthly contribution cap for subscribers to the Employees’ Provident Fund Organization (EPFO) and the Employees’ Pension Scheme (EPS). 

    The government intends to increase the salary cap of Rs 15,000 for employee contributions, according to the Union minister. The Minister said, “We are trying to increase this limit of Rs 15,000.” Mandaviya said discussions about raising the minimum pension under the EPS were ongoing inside the Ministry. The minister said this during the first 100 days of the Modi 3.0 government.

    Currently, the pension contribution is set at 8.33% of the maximum wage ceiling, and contributions are payable on the Rs 15,000 maximum wage ceiling. 

    Under the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952, companies with 20 or more employees must make provident-fund savings. A minimum of 12% of an employee’s pay is automatically deducted to fund provident funds, with an additional 12% contributed by the employer.

    Employees who earn more than Rs 15,000 can choose the percentage of their salary to set aside for pensions and retirement benefits, Mandaviya said in an earlier press briefing.

    What will be the impact on EPS and EPF once the EPFO wage ceiling is revised?

    The government is considering increasing the EPFO salary cap from Rs 15,000 to Rs 21,000. Contributions made by employees to their EPS and EPF will be affected once the EPFO wage ceiling is revised.

    In the case of employees making Rs 15,000 or less per month, the employer and employee each contribute 12% of their monthly earnings to the EPF account under the EPFO. Currently, the maximum wage ceiling of Rs 15,000 applies to both employer and employee contributions.

    EPFO rules dictate that employee contributions are based on basic salary with the employee’s whole contribution going into the provident fund account. The employer’s contribution is divided into EPS (8.33%) and provident fund account (3.67%).

    The current EPF contribution for an employee with a basic salary of Rs 15,000 is Rs 1,800, but if the wage ceiling is revised to Rs 21,000, the contribution will increase to Rs 2,520.

    When the employer matches the employee’s 12% contribution, it gets bifurcated to 3.67% EPF. The current monthly payment by the employer which is Rs 550.50 will increase to Rs 770.70 post the proposed EPFO wage ceiling revision.

    How will wage ceiling revision increase the retirement corpus from EPFO?

    Assume that a worker, at the age of 23, enrolls in the EPFO plan, with a basic pay of Rs. 15,000, and continues to contribute for the next 35 years, until he retires at age 58. Throughout his employment, the employee amasses a total corpus of Rs 71.55 lakh, generating an interest sum of Rs 60.84 lakh on his own contribution of Rs 10.71 lakh at an annual interest rate of 8.25%.

    Increased wages to Rs 21,000 would result in a corpus of Rs 1 crore over 35 years, with interest of Rs 85 lakh on the Rs 15 lakh personal investment.

    As a result, the employee will receive Rs. 28.45 lakh in extra EPF corpus upon retirement, besides getting a higher pension under EPS.

    Revision of wage cap to increase the amount of pension


    A larger pension amount will be received by EPF subscribers upon retirement since the EPS contribution is adjusted in tandem with increases to the pay ceiling under the EPFO. The following formula is used to determine the EPS pension according to the Employees’ Pension (Amendment) Scheme, 2014:
     
    (Number of years of pensionable service X Average monthly salary for 60 months)/70.

    The time frame within which an employee made active contributions to their EPF and EPS accounts is known as their pensionable service period.

    EPFO hikes withdrawal limit to Rs 1 lakh from Rs 50,000

    Additionally, the Employees’ Provident Fund Organisation has raised the withdrawal cap from the existing Rs 50,000 to Rs 1 lakh.

    “If you are an EPFO contributor and if there is some family emergency and if you want to withdraw the PF, the one time withdrawal limit has now been raised,” Mandaviya said at a press briefing earlier this month.

    Provident funds provide retirement income to over 10 million organized sector employees in India, often serving as a key lifetime savings corpus. The Employees’ Provident Fund Organisation (EPFO), a statutory body under the Ministry of Labour and Employment, manages these schemes.

  • Punjab cupboard approves implementation of previous pension scheme

    By means of Companies

    CHANDIGARH: The Punjab cupboard has licensed the recovery of Previous Pension Scheme.

    The verdict has been taken in a cupboard assembly on Friday. An authentic notification can be put out therefore. Confronted with a number of calls for from executive workers, the Punjab executive took the verdict to revive the Previous Pension Scheme.

    This may at once receive advantages greater than 1.75 lakh workers these days coated below NPS. Along with this, 1.26 lakh workers are already coated below the present OPS.

    Previous, Rajasthan, Chhattisgarh and Jharkhand too went again to the Previous Pension Scheme and quashed the brand new pension scheme.

    Underneath the previous pension scheme, a central authority worker is entitled to a per thirty days pension after retirement. The per thirty days pension is generally part of the ultimate drawn wage of the individual.

    Underneath the brand new pension scheme, workers give a contribution a portion in their salaries to the pension fund. In line with that, they’re entitled to a one-time lump sum quantity on superannuation.

    For the report, the previous pension scheme was once discontinued in December 2003, and the brand new pension scheme got here into impact on April 1, 2004. 

    The scheme is aimed toward safeguarding the way forward for executive workers and recognising their contribution in opposition to the state. As a way to make sure that the scheme being presented is financially sustainable for the exchequer at some point additionally, the federal government might be contributing proactively in opposition to the advent of a pension corpus which is able to carrier the pension in long term to the beneficiaries of the scheme.

    This contribution in opposition to the pension corpus might be Rs 1,000 crore according to annum to start with and can step by step build up in long term.

    But even so, the present amassed corpus with NPS is Rs 16,746 crore for which the state will request the Pension Fund Regulatory and Construction Authority of the federal government of India to refund this quantity for efficient utilisation at its finish.

    (With Inputs from ANI, IANS)

    CHANDIGARH: The Punjab cupboard has licensed the recovery of Previous Pension Scheme.

    The verdict has been taken in a cupboard assembly on Friday. An authentic notification can be put out therefore. Confronted with a number of calls for from executive workers, the Punjab executive took the verdict to revive the Previous Pension Scheme.
    This may at once receive advantages greater than 1.75 lakh workers these days coated below NPS. Along with this, 1.26 lakh workers are already coated below the present OPS.

    Previous, Rajasthan, Chhattisgarh and Jharkhand too went again to the Previous Pension Scheme and quashed the brand new pension scheme.

    Underneath the previous pension scheme, a central authority worker is entitled to a per thirty days pension after retirement. The per thirty days pension is generally part of the ultimate drawn wage of the individual.

    Underneath the brand new pension scheme, workers give a contribution a portion in their salaries to the pension fund. In line with that, they’re entitled to a one-time lump sum quantity on superannuation.

    For the report, the previous pension scheme was once discontinued in December 2003, and the brand new pension scheme got here into impact on April 1, 2004. 
    The scheme is aimed toward safeguarding the way forward for executive workers and recognising their contribution in opposition to the state. As a way to make sure that the scheme being presented is financially sustainable for the exchequer at some point additionally, the federal government might be contributing proactively in opposition to the advent of a pension corpus which is able to carrier the pension in long term to the beneficiaries of the scheme.

    This contribution in opposition to the pension corpus might be Rs 1,000 crore according to annum to start with and can step by step build up in long term.

    But even so, the present amassed corpus with NPS is Rs 16,746 crore for which the state will request the Pension Fund Regulatory and Construction Authority of the federal government of India to refund this quantity for efficient utilisation at its finish.(With Inputs from ANI, IANS)