Persons who joined State and Central Government jobs after 2004 may get Family Pension as recommended by the 7th Pay Commission. It is expected to be applicable from the beginning of 2016. However, employees who joined post 2004 gets family pension.
There is evidence that the popularity of Government services has dropped drastically in the past decade. According to reports, the number of people who joined the Government Services between the period April 1994 and April 2004 was more than 50 lakhs. After 2004, this number dropped to about 33 Lakhs. The expert opinion about this is that it can be blamed on the Governments’ decision to obliterate pension. This decision has made people opt for the corporate sector.
This does not necessarily have to mean bad news for the 33 lakh people who joined after 2004 in the Central and State Government jobs. For NPS Employees who joined after the year 2004, the Government is now talking about giving them Family Pension. According to sources, the 7th Pay Commission has recommended the same. After the State Governments submit their reports by the end of December, it is expected to be approved and come into effect by the beginning of 2016.
Employees who joined in Government Services after 2004 come under contributory pension scheme. Under this scheme 10% of the basic salary will be deducted and contributed throughout their service. Once the employee retires, 70% of the pension would be given to them in lump. The rest of the 30% would be used for component and paid on a monthly basis until their death.
Those who joined before 2004 have the advantage of earning family pension. Money is also not deducted from the salary for pension. These mentioned employees can earn 50% of the last drawn salary as pension once they retire.
According to sources, the 7th Pay Commission may even contain recommendations for NPS revisions. It is expected to be converted to family pension which will be very beneficial for a number of Government employees. Officials, including former Chief Secretary, Madha Pradesh, have recognized and stated the importance of pension in Government jobs. They have said that one of the main reasons that youth used to search out government jobs was for the security that pension plan secured. As long as the Government accepts the recommendations of the 7th Pay Commission, people may start seeking out jobs in the Government Services again. The Finance Minister of Madhya Pradesh, Mr.Jayanth Malaiya also said if the recommendations are implemented by the central government, Madhya Pradesh may follow suit as well.
NPS Other Pages
- HDFC National Pension Scheme
- ICICI Bank National Pension System
- NPS Withdrawal Forms
- POP and CRA Charges under NPS
- Axis Bank National Pension System
- Bank of Baroda National Pension System
- Bank of Maharashtra New Pension Scheme
- Central bank of India New Pension Scheme
- South Indian Bank New Pension Scheme
- Canara Bank New Pension System
- Corporation Bank New Pension Scheme
- Federal Bank New Pension Scheme