It may come as a surprise to many that those joining the IAS after 2003 are NOT entitled to any pension on retirement.
Those who joined the service earlier than this year will continue getting the pension till they die.
Pre-2003 there was a compulsory Provident Fund Contribution that each IAS officer had to make every month. There was NO matching contribution to this by the government.
Now for Post 2003 entrants, there is NO pension on retirement.
A thoroughly misleading nomenclature "New Pension Scheme" has been introduced for every one, even non-service public.
It is NOT pension but joining a Provident Fund Scheme where you contribute. Government does NOT make any matching contribution.
I told you it would come as a surprise to you!
Kindly do correct me if I am wrong.
Those who joined the service earlier than this year will continue getting the pension till they die.
Pre-2003 there was a compulsory Provident Fund Contribution that each IAS officer had to make every month. There was NO matching contribution to this by the government.
Now for Post 2003 entrants, there is NO pension on retirement.
A thoroughly misleading nomenclature "New Pension Scheme" has been introduced for every one, even non-service public.
It is NOT pension but joining a Provident Fund Scheme where you contribute. Government does NOT make any matching contribution.
I told you it would come as a surprise to you!
Kindly do correct me if I am wrong.
Chatrath Saheb is not fully correct. The rider is not for entrants into service after 2003; rather for entrants from 2005 onward. The scheme applicable for them is named as "Pension Fund Scheme". As per the scheme the employee contributes a specified amount from his salary to the fund, which remains in the hands of a public service fund manager, which manages the fund by way of investments and from out of the income periodical amounts are paid to the concerned employee as social security allowance otherwise called new pension. The concerned employee can also opt to withdraw 60% of his deposit in the pension fund at the time of retirement. However, the balance 40% of the amount shall remain with the pension fund manager for payment of the new pension or social security allowance.
ReplyDeleteR. S. Misra
[Once working as Director (Law Studies)
under Mr. Chatrath at Bhubaneswar
Cell No. +91-9437036677