The change recommended by Seventh Central Pay Commission will look to boost investments and improve the transparency when it comes to the scheme.
The Commission will be looking to solve some of the problems of the stakeholders with the scheme
The Seventh Central Pay Commission recommendations on the NPS seek further investments and additional transparency with regards to the scheme.
The NPS has been active for more than ten years and there have been a few grievances against the scheme such as follow:
NPC has analysed the aforementioned concerns of the stakeholders and met with Chairman, representatives of DOPT (Department of Personnel and Training), DPPW (Department of Pensions and Pensioners Welfare), DFS (Department of Financial Services, DoE (Department of Expenditure), and PFRDA.
With regards to the pension’s future value under NPS, the Commission has said that it depends upon a blend of the following factors:
The Commission has been working on finding solutions for all grievances. Since many individuals and associations presented complaints regarding the inadequate information provided by the NPS, the Commission revealed that efforts are now focussed on capturing subscribers’ mobile numbers and email addresses to facilitate seamless communication. The communication also recommends stakeholders must consult with each other on a periodical basis.
The Commission also revealed that the NPS will not be owned by any department of the Indian Government, recommending the formation of a committee that includes the Department of Financial Services’ Secretary, the Department of Pension and Pensioners Welfare’s Secretary, and the Department of Administrative Reforms and Public Grievances’ Secretary to review the progress made in addressing grievances related to the NPS.
So far as tax treatment is concerned, the Commission said that tax neutrality must be ensured across all avenues to enable long-term savings for post-retirement incomes, thereby ensuring that no employee covered by the National Pension Scheme is at a disadvantage. Withdrawal under the NPS is recommended to be tax-free so that the scheme is at par with other pension schemes. It also recommends that when an NPS subscriber buys annuity, they must be exempt from paying service tax. In case of death of an employee, the Commission recommends the provision of additional relief before their exit from NPS.
The Commission continues to look into the grievances with a view to finding the right solutions in the near future.
The details of the Ombudsman appointed are available on the PFRDA website – http://www.pfrda.org.in/.
At present, Shri Narender Kumar Bhola has been appointed as the new Ombudsman in terms of the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015.
Details of the ombudsman are as given below:
Shri Narender Kumar Bhola
Pension Fund Regulatory and Development Authority
B-14/A, Chatrapati Shivaji Bhawan,
Qutab Institutional Area, Katwaria Sarai, New Delhi- 110016
Chhatrapati Shivaji Bhawan,
Email ID: ombudsman@pfrda.org.in
Landline No.: 011 -26517507 (Ext : 188)
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