WILL NARENDRA MODI ABOLISH NEW PENSION SYSTEM?

| May 25, 2014

WILL NARENDRA MODI ABOLISH NEW PENSION SYSTEM?

This is a million dollar question in the minds of lots of young workers who have joined Government services after 01.01.2004 whether Narendra Modi led BJP government at the Centre will abolish New Pension System. New Pension System in Government Sector hasn’t fulfilled the aspirations of young workers. Since the implementation of New Pension System, Government has brought so many changes into this. Infact, Congress led government has brought PFRDA Act into the parliament in 2013 and got it passed in both houses of parliament. Since then, it got clear that NPS is going to stay in the system.

But BJP in its menifesto has clearly mentioned that its government will provide social security to the old people & pensioners. Economists as far as pensioners are concerned interpreting this social security differently. Some says, that Modi led government might exempt Government Sector from NPS, some says government will ensure minimum return on the funds invested by subscribers in Tier-I Accounts of NPS. If this is to happen there is a win-win situation for gov employees. If Gov Employees are exempted from NPS then their dream will come true, if minimum return is ensured and taking previous returns into account & market hysteria related with Modi government, minimum return should be between 10% – 13% per annum. If minimum return is ensured & that too to the tune of 10% to 13% wouldn’t be a bad proposition of young gov employees.

Now let’s discuss some realities, News Papers dated: 25.05.2014, gives clear picture how Modi led government would be treating New Pension System. Today’s news headlines is that around 60 billion dollar Foreign Investment is going to be poured into  Indian Markets. Big chunk of this foreign investment may also be invested into the New Pension System. Mr. Modi has always advocated confidence building measures between government and foreign investors during interviews which Mr. Modi gave during election campaign. Government has already allowed 26% Foreign Direct Investment in NPS therefore in no circumstances Mr. Modi will make any changes in to this. If any change at this moment is possible it would be minimum return guarantee on New Pension System.  One more thing, in present scenario govemployees.in would recommend NPS subscribers to keep themselves updated about rates of NAVs in which their funds are being invested by fund managers. NPS subscribers can switch between different companies.

govemployees.in wish that good sense prevail on government and young govemployees

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