The Central Government of India just lately made a major change in pension guidelines for its staff in the event that they go lacking throughout their service interval. The households of lacking Central authorities staff lined underneath the National Pension System (NPS) at the moment are entitled to obtain a household pension, wage arrear, depart encashment and retirement gratuity.
Ajit Kumar, Chief Strategy Officer, KFintech, says, “It will benefit the families of Central Government employees, especially those posted in violence-affected areas such as Jammu and Kashmir, North-eastern regions and Naxalite-prone areas.”
A lacking Central authorities worker’s household will instantly get household pension advantages.
Kumar explains, “To date, the Central government employees covered by CCS pension rules 1972 used to get the same benefits if they went missing during their service. As per the new Office Memorandum (OM) dated 28th April 2022, the said benefits will be extended to the family of a missing Central government employee covered under NPS.”
He additional provides, “It will allow the family of the employees to get the pension benefits without having to wait for the government to declare the missing employee dead or wait for seven years to get the benefits.”
However, for the interval the household of the lacking staff will get a pension or till the federal government declares him/her lifeless, the NPS account and respective PRAN (Permanent Retirement Account Number) shall be suspended.
Kumar factors out, “if the missing government servant re-appears and re-joins the service, the amount paid as a pension to their family during the missing period will be deducted from the salary. In this case, the NPS account against his/her name will be reactivated so is the PRAN number.” Note that the advantages obtainable to the households of mission central authorities staff are topic to situations and procedural necessities.
On the opposite hand, specialists say if the federal government declares the mission worker lifeless after seven years, the collected corpus within the NPS account from authorities contribution and its returns shall be transferred to the federal government account. The remaining quantity, together with the worker contribution and the return, will go to the nominee or authorized inheritor.
The Benefits of NPS
Following are the highest advantages of NPS:
- The National Pension System presents numerous funding choices to buyers and permits them to decide on their most well-liked pension fund. They may also monitor the expansion of their pension corpus.
- Operating an NPS account is simple as you’ll get a singular PRAN quantity towards your account, and it stays the identical all through your life. Kumar provides, “One can also switch from one investment fund to another up to 2 times during one’s life.”
- Indian residents from the age of 18 to 65 years from any job sector are eligible to open an NPS account.
- The upkeep value of the NPS account, Kumar says, “is low and the return it promises is higher than most retirement planning schemes.”
- The quantity paid in the direction of NPS investments is eligible for tax advantages underneath sections 80C and 80CCD.
Hence, whereas the National Pension System (NPS) presents monetary independence and safety in the course of the retirement age of the subscribers, “the benefits will be transferred to the subscriber’s family in case he/she goes missing during the service years,” provides Kumar.
Source: www.financialexpress.com”