Latest news with #PensionFundRegulatoryandDevelopmentAuthority
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Business Standard
27-05-2025
- Business
- Business Standard
Extra pension perks? UPS has something for NPS retirees and spouses
The Pension Fund Regulatory and Development Authority (PFRDA) has announced benefits under the Unified Pension Scheme (UPS) for central government employees who retired under the National Pension System (NPS) on or before March 31, 2025. These benefits also extend to their spouses. Who is eligible for Unified Pension Scheme (UPS)? According to a recent notification by the Department of Financial Services and UPS Regulations, 2025: The scheme covers Central Government employees who retired on or before March 31, 2025. They must have completed a minimum of 10 years of qualifying service, 'Legally wedded' spouses of such retirees are also eligible for the benefits. These UPS benefits are over and above the existing NPS entitlements, including annuities. Key benefits under Unified Pension Scheme (UPS) A one-time payout equivalent to one-tenth of the last drawn basic pay plus dearness allowance (DA) for each completed six months of qualifying service. Monthly top-up amount A fixed monthly benefit calculated as: (Admissible UPS payout + dearness relief) – Representative annuity amount under NPS. Interest on arrears Simple interest will be paid on arrears of the above amounts, calculated at the applicable Public Provident Fund (PPF) rates. Note: Sample calculations are available in Schedule VII of the PFRDA UPS Regulations, 2025. How to claim benefits of Unified Pension Scheme (UPS) Applicants can choose between physical or online modes: Offline submission Download the relevant form (Form B2 for subscribers, B4/B6 for spouses) from Submit the completed form to the Drawing and Disbursing Officer (DDO) of the office where the subscriber last served. Online submission Visit the same website Fill and submit the online form directly to the DDO for processing. Important deadline for Unified Pension Scheme (UPS) Application Window: April 1, 2025 to June 30, 2025 No claims will be accepted after this period. PFRDA conducts webinars to help retirees and their families understand the scheme better. Details are available on the official PFRDA website.
Time of India
21-05-2025
- Business
- Time of India
NPS vs UPS Calculator: New tool for Government employees; Compare NPS and UPS for higher retirement benefits
Pension under Unified Pension Scheme: How the UPS calculator works Retirement age: Enter your superannuation age (in years) to set the timeline for calculations. This is the age when you will retire from the central government job. Monthly Basic Pay: Input your current basic pay, which determines contribution amounts. Existing NPS Tier 1 corpus: If you're an NPS subscriber, provide your current Tier 1 corpus to factor in existing savings. Monthly contribution: Specify the amount you plan to contribute monthly until retirement. Based on these inputs, the calculator estimates: Projected corpus at retirement: The total accumulated amount by the time you retire. Monthly pension: The tentative monthly pension under UPS or NPS, based on annuity rates and scheme rules. Lump Sum Amount: The withdrawable amount at retirement, which varies between the two schemes. Current age of employee: 44 Employee's age when joining: 24 Date of joining: Joined in May 2005. He has 35 years of qualified service. Retirement age: 60 (default assumption) Monthly Basic pay today: Rs 40,000 (Assumption) Existing NPS Tier 1 corpus: Rs 10 lakh (Assumption) Annual Basic pay growth rate: 5% (default assumption) Annual Dearness Allowance (DA) growth rate: 3% (Assumption) Expected return on investment: 10% (Assumption) Final Lump sum withdrawal percentage: 60% (default assumption) Annuity rate after retirement: 6.5% (default assumption by calculator ) Life expectancy: 78 years Surviving spouse's life expectancy: 80 years Live Events The Pension Fund Regulatory and Development Authority ( PFRDA ) has introduced a new Unified Pension Scheme (UPS) Calculator to help central government employees estimate their pension benefits under both the National Pension System (NPS) and the UPS. This user-friendly calculator is designed to help people make well-informed decisions when selecting their pension from April 1, 2025, the Unified Pension Scheme will apply to all new central government employees, offering a more stable and predictable pension payout than the market-linked NPS. Current NPS subscribers also have the option to transition to UPS if they choose. Aimed at ensuring long-term financial security through assured pension benefits, the scheme emphasizes the importance of understanding one's retirement outlook. The UPS Calculator plays a key role in this, providing transparency and clarity on expected pension know how the UPS calculator works, a central government employee needs to know certain terminologies. These are as follows:Here is an example to understand NPS and UPSUPS Payout: Rs 32,360 + Dearness ReliefNPS Payout: Rs 29,762(i) Lumpsum Payout at SuperannuationUPS: Rs 13,44,160NPS: N/A(ii) Final Withdrawal Payout at SuperannuationUPS: Rs 72,87,263NPS: Rs 82,41,741(iii) Total monthly payouts to subscribers in retirement phaseUPS: Rs 1,06,52,263NPS: Rs 71,42,842Aggregate expected benefits to be received by the subscriber(i + ii + iii)UPS: Rs 1,92,83,686NPS: Rs 1,53,84,584When all benefits are aggregated—including lump sum, final withdrawal, and retirement-phase monthly payouts—UPS offers a total of Rs 1.92 crore, surpassing the Rs 1.53 crore expected under is a 'fund-based' payout system which relies on the regular and timely accumulation and investment of applicable contributions (from both the employee and the employer (the Central Government)) for grant of monthly payout to the to the UPS FAQs, 'The contribution of employees will be 10% of (basic pay + Dearness Allowance). The matching Central Government contribution will also be 10% of (basic pay + Dearness Allowance). Both will be credited to each employee's individual corpus. Further, the Central Government shall provide an additional contribution of an estimated 8.5% of (basic pay + Dearness Allowance) of all employees who have chosen the UPS option, to the pool corpus on an aggregate basis. The additional contribution is for supporting assured payouts under the UPS option.'
Business Mayor
15-05-2025
- Business
- Business Mayor
Atal Pension Yojana gets record 7.65 crore subscribers: Know what has really worked and how it helps subscriber in retirement
The scheme has also seen a steady increase in female participation, with women now accounting for approximately 48% of the total subscriber base. Launched on May 9, 2015, and made operational from June 1 in the same year, the scheme was introduced to address the challenges of longevity risk and inadequate retirement planning among India's informal workforce. It encourages voluntary retirement savings by offering fixed pension benefits determined by the contributor's age at the time of enrolment and their monthly contribution amount. Primarily aimed at low-income and unorganised sector workers, Atal Pension Yojana has become one of the country's most accessible and inclusive social security initiatives. With a growing subscriber base and an expanding pension fund, the scheme has become an important component of India's retirement savings framework. It promotes long-term financial discipline among lower-income households and aims to ensure financial security for citizens post-retirement. The government's emphasis on digital accessibility, enhanced rural outreach, and increasing female enrolment has helped deepen the Atal Pension Yojana's reach across the country. In fact, women accounted for over 55% of new subscribers in FY 2024–25, alongside a significant increase in total enrolments during the same period. Open to Indian citizens between the ages of 18 and 40, Atal Pension Yojana provides a fixed pension ranging from Rs 1,000 to Rs 5,000 per month starting at age 60. Contribution amounts vary based on the age of entry and the selected pension tier. A minimum contribution tenure of 20 years is since October 1, 2022, individuals classified as income taxpayers are no longer eligible to join the scheme. Initially, the government offered co-contributions of 50% of the subscriber's contribution (up to ?1,000 per annum) for five years to those who enrolled between June 2015 and March 2016—provided they were not income taxpayers and were not covered by any other statutory social security Atal Pension Yojana is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under the broader framework of the National Pension System (NPS) Atal Pension Yojana: Contribution breakdown at various levels Guaranteed Monthly Pension (₹) 1000 Age at Entry Vesting Period (Years) Monthly Contribution (₹) 19 41 Rs 46 24 36 Rs 70 29 31 Rs 106 34 26 Rs 165 39 21 Rs 264 The corpus accumulated at the age of 60 years is Rs 1.7 lakh. What happens after the subscriber's death? The promised monthly pension is credited to account of the subscriber. After the age of 60 years, in the event of the subscriber's demise, the Atal Pension Yojana ensures continued financial support for the family. The subscriber's spouse is entitled to receive the same monthly pension amount that the subscriber was receiving, continuing until the spouse's death. Upon the death of both the subscriber and the spouse, the accumulated pension corpus, as it stood at the time the subscriber turned 60, is returned to the nominee designated at the time of enrolment. Who should consider investing in Atal Pension Yojana? The Atal Pension Yojana can be best suited for low-income, non-taxpaying individuals, particularly those working in the informal sector or in rural areas who do not have access to formal retirement benefits such as the Employees' Provident Fund (EPF). Since October 1, 2022, income taxpayers are no longer eligible to enroll in the scheme. APY is not advisable for those seeking market-linked returns or already covered by employer-backed pension plans. How to contribute to Atal Pension Yojana? Contributions to the Atal Pension Yojana can be made monthly, quarterly, or half-yearly through auto-debit from your savings bank or post office account. The amount you contribute depends on your age at the time of joining and the pension amount you choose. You can make your payment on any day within the due period—for example, anytime in the month for monthly contributions, or during the first month of the period for quarterly or half-yearly payments. What happens if you miss payments for Atal Pension Yojana? If there's not enough balance in your account by the due date, it will be considered a default. Missed payments can be deducted later along with a small penalty—₹1 per ₹100 of contribution per month of delay. These penalties are added to your pension corpus. If multiple payments are missed, they may be recovered together once your account has enough funds. Account maintenance charges also apply, and if your corpus (excluding government contribution) becomes zero due to unpaid fees and penalties, the account could be closed and the government's share returned.
Time of India
15-05-2025
- Business
- Time of India
Atal Pension Yojana gets record 7.65 crore subscribers: Know what has really worked and how it helps subscriber in retirement
The Atal Pension Yojana (APY), India's flagship retirement savings scheme for the unorganised sector, has crossed a major milestone with over 7.65 crore subscribers and a total corpus of Rs 45,974.67 crore as of April 2025, according to an official government release. The scheme has also seen a steady increase in female participation, with women now accounting for approximately 48% of the total subscriber base. Launched on May 9, 2015, and made operational from June 1 in the same year, the scheme was introduced to address the challenges of longevity risk and inadequate retirement planning among India's informal workforce. It encourages voluntary retirement savings by offering fixed pension benefits determined by the contributor's age at the time of enrolment and their monthly contribution amount. Primarily aimed at low-income and unorganised sector workers, Atal Pension Yojana has become one of the country's most accessible and inclusive social security initiatives. With a growing subscriber base and an expanding pension fund, the scheme has become an important component of India's retirement savings framework. It promotes long-term financial discipline among lower-income households and aims to ensure financial security for citizens post-retirement. The government's emphasis on digital accessibility, enhanced rural outreach, and increasing female enrolment has helped deepen the Atal Pension Yojana's reach across the country. In fact, women accounted for over 55% of new subscribers in FY 2024–25, alongside a significant increase in total enrolments during the same period. Live Events Open to Indian citizens between the ages of 18 and 40, Atal Pension Yojana provides a fixed pension ranging from Rs 1,000 to Rs 5,000 per month starting at age 60. Contribution amounts vary based on the age of entry and the selected pension tier. A minimum contribution tenure of 20 years is required. However, since October 1, 2022, individuals classified as income taxpayers are no longer eligible to join the scheme. Initially, the government offered co-contributions of 50% of the subscriber's contribution (up to ?1,000 per annum) for five years to those who enrolled between June 2015 and March 2016—provided they were not income taxpayers and were not covered by any other statutory social security scheme. The Atal Pension Yojana is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under the broader framework of the National Pension System (NPS) Atal Pension Yojana: Contribution breakdown at various levels Guaranteed Monthly Pension (₹) 1000 Age at Entry Vesting Period (Years) Monthly Contribution (₹) 19 41 Rs 46 24 36 Rs 70 29 31 Rs 106 34 26 Rs 165 39 21 Rs 264 The corpus accumulated at the age of 60 years is Rs 1.7 lakh. What happens after the subscriber's death? The promised monthly pension is credited to account of the subscriber. After the age of 60 years, in the event of the subscriber's demise, the Atal Pension Yojana ensures continued financial support for the family. The subscriber's spouse is entitled to receive the same monthly pension amount that the subscriber was receiving, continuing until the spouse's death. Upon the death of both the subscriber and the spouse, the accumulated pension corpus, as it stood at the time the subscriber turned 60, is returned to the nominee designated at the time of enrolment. Who should consider investing in Atal Pension Yojana? The Atal Pension Yojana can be best suited for low-income, non-taxpaying individuals, particularly those working in the informal sector or in rural areas who do not have access to formal retirement benefits such as the Employees' Provident Fund (EPF). Since October 1, 2022, income taxpayers are no longer eligible to enroll in the scheme. APY is not advisable for those seeking market-linked returns or already covered by employer-backed pension plans. How to contribute to Atal Pension Yojana? Contributions to the Atal Pension Yojana can be made monthly, quarterly, or half-yearly through auto-debit from your savings bank or post office account. The amount you contribute depends on your age at the time of joining and the pension amount you choose. You can make your payment on any day within the due period—for example, anytime in the month for monthly contributions, or during the first month of the period for quarterly or half-yearly payments. What happens if you miss payments for Atal Pension Yojana? If there's not enough balance in your account by the due date, it will be considered a default. Missed payments can be deducted later along with a small penalty—₹1 per ₹100 of contribution per month of delay. These penalties are added to your pension corpus. If multiple payments are missed, they may be recovered together once your account has enough funds. Account maintenance charges also apply, and if your corpus (excluding government contribution) becomes zero due to unpaid fees and penalties, the account could be closed and the government's share returned.
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Business Standard
08-05-2025
- Business
- Business Standard
Moving abroad? Changes you must make in your bank, demat, and MF accounts
NRIs must also comply with the tax filing norms that apply to them once their residency status changes Premium Sanjay Kumar Singh Karthik Jerome New Delhi Listen to This Article The Pension Fund Regulatory and Development Authority (PFRDA) has introduced new rules for the National Pension System (NPS) applicable to individuals who have renounced their Indian citizenship. If such a subscriber does not hold an Overseas Citizen of India (OCI) card, they must notify the NPS Trust immediately, after which their account will be closed. Let us explore some of the other key changes on the financial front that a person must undertake when their status changes from resident to non-resident. Bank accounts On becoming a non-resident, all resident bank accounts must be redesignated as non-resident ordinary (NRO) accounts. An NRE (non-resident
