New Pension Scheme in India
In the schemes for central government employees there is certain part of the salary that gets deducted as pension fund premium every month. The best part is that government contributes an equal amount from it’s’ side to the pension account of individual employees.
- The scheme involves a fund that requires very less management fee as compared to other funds.
- The scheme works on the principle of generating pension based on the income earning capacity of the account holder.
- The account and the fund is portable which means that even if the account holder’s residence or office gets shifted to a different city he/she can maintain the same account.
- The scheme unlike other pension plans does not provide any guarantee on the sum that gets accrued by the end of the term.
- The tax benefits under this scheme are not very clearly indicated during opening an account.
- Although the scheme is stated to be meant for people of all economic classes the extent of benefits through this scheme is not very better than few policies of other insurance companies.