The Department of Pension and Pensioners Welfare has given very good news for Central Government employees. The department has issued a notification stating that government employees can now avail the old pension scheme till May 31, excluding NPS. The department has issued a notification that all the employees who want to take advantage of this scheme will have to apply by May 5. Those who get jobs between 1 January 2004 to 28 October 2008 cannot avail this facility. They will continue to get the benefit of CCS pension as before. By May 5, employees who do not apply for the benefit of old pension will automatically get the benefit of NPS. Only those employees of the Center can take advantage of this scheme, who were appointed before 1 January 2004 under Railway Pension Rules or CCS Pension Rules. If these employees have left the state government job and worked for the central government, then they can get the benefit of the old pension scheme. According to experts, the old pension scheme is more beneficial for the employees. In this scheme, after retirement, the pensioner and his family also get security, which is not the case in the new rules.
What is National Pension System
Under the National Pension System, people between the age of 18 to 60 years can open an account in any government or private bank and invest in it and later get the benefit of pension. Under the 80 CCD, tax is also exempt for investment in pension. Salary workers can deposit 10% of their salary and others 20% of their income in the pension account. By doing this, they get a tax rebate of up to 1.5 lakh.