Government employees can subscribe to NPS with no age constraint

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Government employees can subscribe to NPS with no age constraint
All of the new government employees, central or state, who are compulsorily required to subscribe to the NPS or National Pension scheme launched in early 2004, can now enroll in the scheme at any age without any constraint or entry age barrier. The scheme is a reflection of the government's efforts towards providing retirees with sufficient income at the time of retirement. To the scheme, government employees who have joined before 2004 can also enroll but government shall not make a matching contribution to the scheme as in the other case. Further, employees of private companies and unorganized sectors who are also allowed to enroll in the scheme have increased the subscriber base by substantial number.

The only condition that needs to be followed in this respect is that the contribution towards the account by the subscribe cannot be for than 42 years. The notification has been put forth by the pension regulator, PFRDA which was mandated to perform the role of regulating the pension sector in the country as per the executive order of the government. So, with an aim and objective to develop and regulate the sector in the country, the regulator introduces changes time and again in the interest of the subscribers of the scheme.

With the new ruling in place, employees joining the government sector even after attaining 60 years of age can enroll in the NPS pension scheme. The regulator until now has debarred those above 60 years of age to enroll in the scheme and may on a case-to-case basis may even approve it. The move will be a boon for private techies and retired bureaucrats who take up top-notch positions later in the life in government departments and different regulatory bodies.

GoodReturns.in

Story first published: Friday, April 25, 2014, 10:44 [IST]
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