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NPS Committee proposes 50% Guaranteed Pension of Last Pay: Bonanza For Government Employees:

As per reports published in Media, NPS Committee constituted by the Government in March-2023 has submitted its recommendation in May-2023 and has proposed Guaranteed Pension based on Andhra Pension Model to ensure that Government Employees received Guaranteed Pension in the range of 40% to 50% of Last Pay based on length of the service.



As per Report Published in Financial Express, The Government may guarantee up to 50% of the last basic pay as pension to central government staff under the National Pension System (NPS) as against the current market-based returns.


Central Government will give 40-50% of last pay as guaranteed pension subject to adjustments linked to the number of years in service and withdrawals from corpus if any, sources said. Any shortfall in pension corpus for the guaranteed pension amount would be funded from the budget by the Centre for its staff, sources added.


The Andhra Pradesh Guaranteed Pension System (APGPS) Act, 2023 provides that in case of a shortfall in the annuity received by the retired subscriber, a top-up amount will be provided to ensure a monthly guaranteed pension at the rate of 50% of the last drawn basic pay. In case of a shortfall in the annuity received by the spouse of the deceased APGPS subscriber, a top-up amount will be provided to ensure a monthly spouse pension at the rate of 60% of the guaranteed pension.


Cost of living adjustment (COLA) on the last drawn basic pay would be provided as per inflation-adjusted dearness relief, by the rules notified under the Act.


The APGPS Act also said part withdrawals and the final withdrawal made by a subscriber would result in a proportional reduction in the guaranteed pension.



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