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Are you among those who seek government job?
The
underlying reason behind most people looking out for a government job is the
pension they can enjoy after retirement. The culture of joint families is
slowly depreciating and nuclear families are increasing in number. This being
the case, need for such pension amount has become an absolute necessity. Let us
take a look at some of the most common reasons behind the need for pension:
- It is tough for a person to earn money post-retirement
- Most young couples are getting rid of joint families and are wanting nuclear families
- Increasing cost of living
- With the advent in medical field, the overall lifetime of an individual is extended
Youngsters in these days
are looking forward to get retired soon. This has obviously brought in the need
for pension
Government’s
recent scheme:
In t
the year 2004, on January 1, it was announced that anyone who joins in a
central or state government job is eligible for New Pension Scheme (NPS). And,
recently, on 1st May 2009, announcement was made that all
Indians can take part in the scheme. This is broadly divided into two categories:
Category
1 – under this, the individual is eligible to get the
pension amount only after 60 years of age
Category
2 – there is no age limit to get his or her pension
For
those who join in these schemes, a PRAN number will be given. A person is
allowed to get enrolled in just one scheme. In case of transfer or job change,
the individual will have to report to the respective offices.
This is
how pension works:
10% of
salary amount is withheld from the regular salary paid to government employees.
In addition to this, the government invests additional 10% for each and every
government employee. If a person is willing, an additional 10% can be withheld
too. However, the contribution of government is fixed as 10%. The person will
not be eligible to get the funds or obtain loan against the same.
On
completion of service, the retired employee can get 60% of the pension amount
right away between 60 and 70 years of age, and the balance 40% would be given
as monthly payments. In case of unfortunate demise of the person, the nominee
becomes eligible for the same.
This scheme by the government is certainly useful, especially in the recent years having increasing cost of living.
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