Latest news with #NationalPensionSystem
Hindustan Times
8 hours ago
- Business
- Hindustan Times
Haryana officers can opt for UPS till Sept 30
Jul 02, 2025 08:45 PM IST The IAS officers coming under the National Pension System (NPS) in Haryana can now opt for the Unified Pension Scheme (UPS) till September 30, 2025. To opt for UPS, the officers will have to fill their option in the prescribed form and send it to the Services-3 branch of the chief secretary's office via e-mail (File) According to a letter issued by the chief secretary's office, the last date for sending the choice has been extended from June 30 to September 30. To opt for UPS, the officers will have to fill their option in the prescribed form and send it to the Services-3 branch of the chief secretary's office via e-mail
Hans India
3 days ago
- Business
- Hans India
How to make your retirement fund last a lifetime?
As life expectancy increases and pension coverage shrinks, building a retirement corpus isn't enough — making it last a lifetime is the real challenge. Rising medical costs, inflation, and market fluctuations can quickly deplete savings unless your retirement portfolio is built to endure all life stages. That's where a pyramidal retirement framework comes in — a structured plan with three distinct layers for safety, stability, and long-term growth. Layer 1: Safety and Liquidity (50–60% of corpus) The foundation ensures uninterrupted monthly expenses and emergency access with minimal risk. Ideal investments include: Liquid and ultra-short debt mutual funds Senior Citizen Savings Scheme (SCSS) RBI Bonds SWPs with short-duration funds Overnight or arbitrage funds as emergency buffers This layer provides peace of mind and quick access to funds without market-linked volatility. Layer 2: Stability and Moderate Growth (25–30%) This middle layer aims to preserve purchasing power by beating inflation with moderate risk. Best choices: Multi-Asset Allocation mutual funds High-quality corporate bond funds Conservative PMS (Portfolio Management Services) offering regular payouts This is your reliable mid-term income source and inflation hedge. Layer 3: Long-Term Growth (10–15%) The top layer fuels your corpus for the long run and helps leave a financial legacy. Recommended options: Flexi-cap, large-cap, and mid-cap equity mutual funds Balanced Advantage Funds High-quality equity PMS for HNIs Use this layer sparingly in the early years of retirement and let it grow to fight long-term inflation and provide legacy capital. Smarter Returns Need Smarter Strategy A successful retirement plan isn't just about picking products — it's about strategy: Diversify across equity, debt, and gold Control risk by avoiding high-return traps and focusing on inflation-beating growth Optimise taxes by utilising LTCG exemptions and harvesting losses to lower liabilities Tax tip: LTCG from equity mutual funds up to ₹1.25 lakh annually is tax-free — spread withdrawals to stay under this limit. NPS: A Must-Have Retirement Tool The National Pension System (NPS) remains a powerful and underutilized tool: Withdraw up to 60% tax-free at retirement Use 40% to buy an annuity for lifetime income New SLW feature allows tax-efficient staggered withdrawals, avoiding market timing risks Pro tip: Opt for Active Choice during working years to get higher equity exposure and better long-term growth than the Auto Choice option. Mistakes to Avoid Relying only on annuities with low returns Ignoring healthcare inflation — always have health insurance and a medical emergency fund Locking funds in illiquid products like real estate or ULIPs Skipping estate planning — create a will, assign nominees, and consider a family trust Financial Freedom, for Life A large corpus doesn't guarantee comfort — but smart structuring, strategic allocation, and tax planning do. The pyramid approach ensures a steady income, liquidity in crises, and long-term capital growth. Done right, your retirement fund won't just last a lifetime — it'll also support your legacy.
Hindustan Times
6 days ago
- Business
- Hindustan Times
Haryana gives nod to Unified Pension Scheme
Jun 27, 2025 09:34 AM IST The council of ministers on Thursday gave nod to adopt the Unified Pension Scheme (UPS) with effect from August 1, 2025 and the decision is expected to benefit over two lakh state government employees appointed on or after January 1, 2006. The UPS, introduced under the National Pension System (NPS), aims to provide assured minimum pension and family pension. (HT File) The UPS, introduced under the National Pension System (NPS), aims to provide assured minimum pension and family pension. Eligible employees completing 25 years of service will receive 50% of the average basic pay of the last 12 months before retirement. A minimum guaranteed pension of ₹ 10,000 per month is assured for those with at least 10 years of service. In case of the pensioner's death, the family will receive 60% of the last-drawn pension. Dearness Relief (DR), calculated on the same lines as DA for serving employees, will apply once pension payments begin. A one-time lump sum of 10% of monthly emoluments for every completed six months of service will be paid at superannuation, without affecting the pension. Employee contributions will remain at 10%, while the state will contribute 18.5%—with 10% credited to the individual corpus and 8.5% to a common pool to support assured benefits. The scheme is estimated to cost ₹ 600 crore annually. Existing and future employees can choose between the UPS under NPS or continue with the current NPS structure.
Indian Express
6 days ago
- Business
- Indian Express
Haryana clears Unified Pension Scheme with 50% assured payout for govt staff
The Haryana Cabinet on Thursday approved the adoption of the Unified Pension Scheme (UPS) under the National Pension System (NPS), offering state government employees an assured monthly pension of 50% of their average basic pay at retirement — a major reform expected to benefit over 2 lakh employees appointed on or after January 1, 2006. Cleared at a Cabinet meeting chaired by Chief Minister Nayab Singh Saini, the scheme will come into effect from August 1, 2025. Officials said the decision aligns with the central government's UPS notification under NPS and aims to provide financial security post-retirement to state employees. Under the scheme, employees retiring after at least 25 years of service will be eligible for a pension equal to 50% of the average basic pay drawn in the final 12 months of service. A minimum assured pension of ₹10,000 per month will be extended to those with 10 or more years of qualifying service. In case of the pensioner's death, the family will receive 60% of the last drawn pension. Dearness Relief (DR), calculated like the Dearness Allowance (DA) for serving staff, will apply to both assured and family pensions — but only after pension payouts begin. Employees will also receive a lump sum at retirement: 10% of their monthly emoluments (Basic Pay plus DA) for every completed six months of service. This one-time payment will not affect their pension entitlement. With the implementation of UPS, the state's contribution to employee pensions will rise from 14% to 18.5%, pushing the government's monthly expenditure to approximately ₹50 crore and annual costs to ₹600 crore. The pension fund will be split into two components: an individual corpus and a pool corpus. The individual corpus will consist of the employee's 10% contribution matched by an equal 10% from the state, deposited into personal accounts. The pool corpus will be funded by an additional 8.5% contribution by the government and used to support the assured pension payouts. While employees can choose how their individual corpus is invested, subject to Pension Fund Regulatory and Development Authority (PFRDA) rules, the investment of the pool corpus will be decided by the Haryana government. If no preference is indicated, the default investment pattern defined by PFRDA will apply. For employees who retired before the scheme's implementation but opt in, the PFRDA will work out the mechanism for top-up payments. All existing government employees under the NPS and future hires will be allowed to choose between continuing under NPS or switching to UPS. However, once an employee selects UPS, the choice will be binding. A separate decision will be taken later regarding the extension of UPS to Boards, Corporations, Public Sector Undertakings (PSUs), and State Universities. The Centre had cleared the UPS for central government employees in January this year, following the Union Finance Ministry's nod in August 2023. It applies to those who joined on or after January 1, 2004. Sukhbir Siwach's extensive and in-depth coverage of farmer agitation against three farm laws during 2020-21 drew widespread attention. ... Read More
New Indian Express
25-06-2025
- Business
- New Indian Express
PSU staff in Odisha can now opt for government bonds for pension investment
BHUBANESWAR: Employees of state PSUs and autonomous bodies can now opt for a fully government-backed investment for long-term security of their retirement savings. The Odisha government has allowed them to invest their entire pension contribution in government bonds by selecting pension fund managers and investment patterns under the National Pension System (NPS). As per the notification issued by the Finance department, the pensioners will have the liberty to choose any one of the available pension fund managers, including those from the private sector. They can change their selected fund manager once in a financial year. However, for those who do not wish to make a choice, the existing system of fund allocation among three public sector pension funds will continue as the default option. The notification came after the Pension Fund Regulatory and Development Authority, through a circular clarified that the state governments and state autonomous bodies are free to adopt these provisions voluntarily. In terms of investment patterns under tier-I of NPS, three choices have been offered to the subscribers. The existing scheme in which funds are allocated among three public sector undertaking fund managers will continue as default scheme for both existing and new subscribers, who do not exercise any preference. However, the employees seeking stable returns with lower risk can opt for scheme-G, which allows 100 pc investment in government securities. For those willing to take moderate risks for potentially higher returns, the auto choice life cycle funds are available. While the equity exposure has been capped at 25 pc for the conservative life cycle fund (LC-25), it will be maximum at 50 pc for the moderate life cycle fund (LC-50). The notification stated that eligible NPS subscribers will be allowed to exercise their choice of investment pattern up to two times in a financial year. Earlier, the benefits were available to the state government employees.
