NPS: Big News for Government Employees as Pension Rule Changes! Read Details Here

According to reports, the Nitish Kumar-led Bihar government is considering extending the old family pension system to the dependents of deceased employees under the National Pension Scheme, in line with choices made by the Narendra Modi-led Centre (NPS).

A committee chaired by the Secretary of the Finance Department has been formed to carry out the plan. According to reports, the committee has been ordered to deliver its findings to the state administration by the end of June.

According to a story published in Bhaskar, the new laws will provide 50% of the last income as a pension to the dependents of deceased employees.

Who Will Benefit from this Big Change?

According to sources, newly hired employees can currently take advantage of this bonus, but they must choose the choice ahead of time. Later, dependents of old employees who are covered by NPS can take advantage of this benefit.

NPS Calculator:

If an employee dies, his or her dependent will receive a 7-year pension equal to half of the basic and dearness allowance. 30% of the basic and dearness allowance will be accessible after 7 years. For example, if an employee's basic income is Rs 50,000 at the time of death, the dependent will continue to receive Rs. 25,500 in addition to the dearness allowance for the next seven years. After seven years, 30 percent of the base salary, i.e., Rs. 15,000, as well as the dearness allowance, will be accessible as a pension.

What is NPS?

The National Pension System (NPS) is a voluntary, defined contribution retirement savings plan that enables subscribers to make the best decisions for their future by saving consistently throughout their working lives.

The National Pension System (NPS) aims to instil in residents the habit of saving for retirement.