Thursday, November 26, 2020

*Benefits - Corporates joining NPS*

Pension Fund Regulatory and Development Authority (PFRDA) has introduced a separate pension model for employers viz. corporate entities, central public sector enterprises, public sector undertakings etc. to adopt NPS as a retirement benefit scheme for its employees. This model is known as the NPS - Corporate Sector Model. 

Employer benefits: 

• Ease of Adoption - NPS can be introduced by an employer / corporate (entity) for its employees (as a retirement benefit scheme) within the purview of their employer-employee relationship on a voluntary or a mandatory basis.

• Cost-effective - Employer extending NPS as a retirement benefit scheme to its employees need not establish and maintain a Trust, manage the funds or undertake recordkeeping activities.


• Flexible – It is not mandatory for the employer to contribute to employees’ NPS account. Contributions to NPS depend on the employer’s policy on compensation and retiral benefits extended to its employees. The NPS contribution can be either (i) equal contributions by both employer and employee (say 10% each) or (ii) unequal by employer and employee (say 10% by employee and 14% by employer) or (iii) contribution by only employer or only employee.


• Tax benefits - Employer registered with NPS can claim tax benefits for the amount contributed towards NPS on behalf of employees. The employer can claim upto 10 per cent of the salary (basic and dearness allowance) contributed towards employees’ NPS account as ‘Business Expense’ under Section 36(i)(iv)(a) of the Income Tax Act, 1961.


• Additional avenue - NPS can be offered as an additional avenue for retirement planning and can be offered alongwith any other pension scheme(s) including statutory pension/provident funds.


• Portability - Facility to transfer Approved Superannuation Fund to NPS has been enabled and the transfer of corpus can be made in bulk as is where is basis or on an individual case to case basis.


• Choices - Employer can exercise choice of Pension Fund and decide on the asset allocation on behalf of its employees or can leave these options to the employees.

एसीसी की निर्माण सलाहकार पहल के जरिये हजारों राजमिस्त्रियों, ठेकेदारों और घर बनाने वालों को प्रदान की गई तकनीकी सहायता

 एसीसी ने अपनी निर्माण सलाहकार पहल के तहत घर बनाने वालों, राजमिस्त्रियों और ठेकेदारों को सशक्त बनाने की दिशा में उठाया एक महत्वपूर्ण कदम • ए...