No Old Pension only NPS - All hopes shattered for bankers as a group of bank unions were raising demand to replace the existing NPS with old Pension Scheme. Finance Minister Arun Jaitely said in the parliament that
The government has no proposal to replace the National Pension Scheme (NPS) with the old pension scheme due to rising and unsustainable pension bill and competing claims on the economy.
Further, he added that there is no proposal to replace the National Pension Scheme with old pension scheme in respect of Central Government employees recruited on or after January 1, 2004.
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A total of Rs 1,56,641.29 crore was spent paying pension during 2017-18.
The mandatory contribution by the central government for Tier 1 accounts of its employees covered under NPS had been enhanced from the existing 10 to 14 per cent, which will entail an additional financial impact of Rs 2,840 crore in 2019-20.
The number of family pensioners getting pension through Central Pension Accounting Office by authorised bank under the NPS as on November 30 was 4,779.
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