In a bid to make retirement income scheme more attractive for central government employees, the government has agreed to chip in a higher 14% of the basic salary of an individual as its contribution to the National Pension System (NPS).
The move would benefit over 36 lakh central government employees. Currently, the minimum employee contribution in NPS is 10% of basic pay and an equal contribution is made by the government.
Source- The Hindu Business Line
Static/Current Takeaways Important For IBPS Clerk Mains Exam 2018:
- National Pension System (NPS) is a government-sponsored pension scheme that was launched in January 2004 for government employees.
- However, in 2009, it was opened to all sections.