Abolition of National Pension System and restoration of Old Pension Scheme: Finmin's letter to AIDEF Annexure-I F.No-20/07/2017-PR भारत सरकार
Subject: Representation received for abolition of National Pension System and for restoration of Old Pension Scheme – reg.
- Enhancement of the Government’s contribution from the existing 10% to 14% of the employee’s pay + DA While keeping the employee’s contribution at the existing 10%.
- Providing freedom of choice for selection of Pension Funds and pattern of investment to subscribers
- Payment of compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012
- Providing tax deduction to the contribution made under Tier-II of NPS under Section 80 C for deduction up to Rs. 1.50 Iakh provided that there is a lock in period of 3 years
- Increase In the tax exemption limit for lump sum withdrawal on exit from the existing 40% to 60% making the entire withdrawal exempt from Income tax.