Friday, March 23, 2012

Light at the end of the Tunnel - NPS Implementation is being Streamlined in Samiti

Please click here to read my blog dated 28th January 2011 where it is explained how delay in implementation of NPS in Samiti is resulting in notional losses to the tune of nine to twenty five lakhs of rupees in the retirement corpus of new employees. You can read here how the contributions of new employees until now are not eligible for tax treatment from a legal perspective. Almost an year after I pointed out the huge notional loss (which means the notional losses are even more higher than previously estimated), Samiti seems to be getting its act together. Already employees of HQ and ROs were issued PRANs (PERMANENT RETIREMENT ACCOUNT NUMBER). Now the efforts are on to roll in the staff from Vidyalaya Units. Its going to be a daunting task in view of the lack of basic understanding of NPS among the employees. Samiti needs to take an initiative to educate the employees about the nuts and bolts of the scheme. This blog has also posted a back of the envelope calculation on NPS corpus that can be accumulated. Please click here to read it ,

In the wake of recent judgment of High Court, it makes sense for post 2001 employees who are  two three decades away from retirement to enroll into NPS. Samiti should think of seeking the option once again from those employees who are appointed prior to 2008. Those who are appointed between 2004 and 2008 should enroll themselves into NPS without any hesitation. Its the best option for them.

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