Latest news with #PFRDA
Bloomberg
7 days ago
- Business
- Bloomberg
India Pension Funds Said to Request Easier Bond Investment Rules
Indian pension managers have asked the industry regulator to ease rules that mandate the tenor of company bonds they can buy, according to people familiar with the matter. The retirement funds recently asked the Pension Fund Regulatory and Development Authority to relax a cap on purchases of corporate bonds that mature in less than three years, the people said, asking not to be named discussing private matters. They also requested permission to buy company debt rated by only one credit assessor, the people said.
The Print
04-07-2025
- Business
- The Print
Govt employees under Unified Pension Scheme to get tax benefit akin to NPS: Finmin
'The government has decided that tax benefits as available under NPS would apply mutatis mutandis to UPS as it is an option under NPS,' it said. The inclusion of UPS under the tax framework marks another step forward in the government's effort to strengthen retirement security for central government employees through transparent, flexible and tax-efficient options, the finance ministry said in a statement. New Delhi, Jul 4 (PTI) In a bid to promote Unified Pension Scheme, the government has made necessary changes to provide tax benefits to employees opting for UPS at par with those under National Pension System (NPS). These provisions ensure parity with the existing NPS structure and provide substantial tax relief and incentives to employees opting for the UPS. The finance ministry through a notification dated January 24, 2025 had notified introduction of the UPS as an option under NPS for the recruits to the central government civil service with effect from April 1, 2025, giving one-time option to the employees covered under NPS for inclusion under the UPS. To operationalise this framework, the Pension Fund Regulatory and Development Authority (PFRDA) notified the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025 on 19th March 2025, it said. UPS is applicable to the central government employees who are covered under the NPS and who choose this option under the NPS, which came into effect on January 1, 2004. The option can be exercised by 23 lakh government employees. On August 24, 2024, the Union Cabinet, chaired by Prime Minister Narendra Modi approved the UPS. Under the old pension scheme (OPS) which has been discontinued since January 2004, employees used to get 50 per cent of their last drawn basic pay as pension. PTI DP HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Mint
04-07-2025
- Business
- Mint
Why Your First Paycheck Should Fund Your Last? Subhasis Ghosh on NPS
Q: Raj, 24, just landed his first big job. He's excited, but isn't retirement planning a little premature at that age? Not at all. That's the best time to start. The power of compounding works in your favor when you begin early. Investing ₹ 1,000 a year can lead to a substantial retirement corpus over time. It's not about how much you save initially—it's about starting the habit. Q: But what exactly is the National Pension System (NPS)? How does it work? It's a government-regulated, voluntary retirement savings scheme. You contribute regularly, and the money is invested in a mix of equity, corporate bonds, government securities, and alternative assets. It's market-linked, professionally managed, and low-cost, making it ideal for long-term wealth creation. Q: So, is it a government scheme or a private one? It's regulated by the Pension Fund Regulatory and Development Authority (PFRDA), but managed by fund managers like us. You get to choose your Pension Fund Manager and even switch once a year. It's your money, your call. Q: How does NPS compare with other investment options like mutual funds or fixed deposits? The objective is different. NPS is designed specifically for retirement, with features like annuity options and partial withdrawal restrictions to encourage long-term saving. It's globally recognised as one of the lowest-cost retirement solutions and generally offers better returns than fixed deposits, historically. Q: Speaking of returns, can NPS beat inflation? Yes. Despite market fluctuations, NPS, with good equity allocation, around 75%, has delivered around 10.5% to 12% CAGR (Compound Annual Growth Rate) over the past 10 years or so. That's well above the average inflation rate. Of course, you need to stay invested long term to fully benefit. Q: And what if someone wants flexibility in contributions? That's the beauty of NPS—you can invest as little as ₹ 1,000 per year. Contribute more when you can, less when things are tight. But just don't skip entirely. The discipline matters. Takeaway: Starting early—even with small amounts—can create a powerful retirement cushion. As Ghosh puts it, 'Retirement planning isn't age-bound. It's intention-bound.' Watch Episode 1 now to learn why your 20s are the perfect time to start securing your future. Note to the Reader: This article has been produced on behalf of the brand by HT Brand Studio and does not have journalistic/editorial involvement of Hindustan Times or LiveMint. The content may be for information and awareness purposes and does not constitute any financial advice.
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Business Standard
04-07-2025
- Business
- Business Standard
Govt extends NPS-like tax benefits to Unified Pension Scheme staff: FinMin
In a bid to promote Unified Pension Scheme, the government has made necessary changes to provide tax benefits to employees opting for UPS at par with those under National Pension System (NPS). The inclusion of UPS under the tax framework marks another step forward in the government's effort to strengthen retirement security for central government employees through transparent, flexible and tax-efficient options, the finance ministry said in a statement. "The government has decided that tax benefits as available under NPS would apply mutatis mutandis to UPS as it is an option under NPS," it said. These provisions ensure parity with the existing NPS structure and provide substantial tax relief and incentives to employees opting for the UPS. The finance ministry through a notification dated January 24, 2025 had notified introduction of the UPS as an option under NPS for the recruits to the central government civil service with effect from April 1, 2025, giving one-time option to the employees covered under NPS for inclusion under the UPS. To operationalise this framework, the Pension Fund Regulatory and Development Authority (PFRDA) notified the PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025 on 19th March 2025, it said. UPS is applicable to the central government employees who are covered under the NPS and who choose this option under the NPS, which came into effect on January 1, 2004. The option can be exercised by 23 lakh government employees. On August 24, 2024, the Union Cabinet, chaired by Prime Minister Narendra Modi approved the UPS. Under the old pension scheme (OPS) which has been discontinued since January 2004, employees used to get 50 per cent of their last drawn basic pay as pension. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
04-07-2025
- Business
- Time of India
Unified Pension Scheme to get tax benefits at par with NPS: Finance Ministry
The government has extended tax benefits to employees opting for the Unified Pension Scheme (UPS), bringing them at par with those available under the National Pension System (NPS), reported PTI, citing the Finance Ministry as saying on Friday. The move aims to encourage adoption of the UPS by central government employees by offering a tax-efficient retirement option under the existing pension framework. 'The government has decided that tax benefits as available under NPS would apply mutatis mutandis to UPS as it is an option under NPS,' the ministry stated. This step is part of a broader effort to ensure retirement security through transparent and flexible pension mechanisms. It ensures parity with the current NPS and provides tax relief and incentives for government employees choosing UPS. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Rajasthan Mosquito-Free Nights: Residents Share Unexpected Secret Mosquito Eliminator Read More Undo The UPS was introduced via a Finance Ministry notification dated January 24, 2025, and came into effect on April 1, 2025. It is available as a one-time option to central government civil service recruits who are covered under NPS, which has been in place since January 1, 2004. To implement the scheme, the Pension Fund Regulatory and Development Authority (PFRDA) issued regulations on March 19, 2025, titled PFRDA (Operationalisation of the Unified Pension Scheme under NPS) Regulations, 2025. Live Events The scheme can be availed by approximately 23 lakh central government employees. It follows the Union Cabinet's approval of the UPS on August 24, 2024, under the chairmanship of Prime Minister Narendra Modi. Under the earlier Old Pension Scheme (OPS), which was discontinued in 2004, government employees received 50 percent of their last drawn basic pay as pension.
