Friday, January 28, 2011

Delay in implementation of NPS costs each employee Nine to Twenty Five Lakh rupees

The employees who joined prior to 2008 are entirely clueless about their social security and their old age is destined to be spent in unending woes. We are spineless and we deserve so. Employees who joined after 2008 are at least hopeful of making the retirement years comfortable with the retirement fund that could be created with proper investment planning. Please refer my previous posts here and here to know how one can ensure better social security with NPS.

But the unexplainable delay in implementation of NPS in samiti causes huge losses for post 2008 appointees. Samiti took around 8 months to bring out a notification after the approval of cabinet for NPS in NVS. Even after two years of cabinet approval, NPS is yet to be rolled out. Average contribution of an employee is 2000 per month with the same matching grant of NVS which amounts to 48,000 per year. Weighted average return of NPS so far stands at 12.3756 % per year. The loss for an employee for last one year amounts to Rs5000/-.  The corpus so far accumulated would have been around 53000.

The loss in terms of corpus at the retirement, for each employee it would be around 9 lakhs. If we start with the initial investment of 50,000 with 40,000 getting added each year with the 12% CAGR the retirement corpus after 25 years would be 75,94,829. The same investment without the initial fifty thousand would fetch only  66,44,826. The notional loss for each employee is around nine lakhs. For those who are 30 and 35 years away from their retirement, the loss would be 20-25 lakhs!!


  1. why is given the special allowance to the teachers only.even the staff nurse and other non-teaching non-vocational staff also work round o clock but the samiti is not interested to give the special allowance to the All non-teaching staff.They are also residing 55 to 75 km away from the District Head Quater as teachers.Therefore Samiti has requested to loook in to the matter and solve the matter of Special Allowance

  2. DOPT has given grade pay Rs.4200 to CSCS udc with five years approved service.then why the Navodaya Vidyalaya Samiti has not taken the action for giving the 4200 to the UDCs of Navodaya Vidyalaya Samiti after five years approved service.
    Therefore Hon'ble Commissioner has requested to look into the matter and put up the proposal to the HRD Ministry for further information.