WITHDRAWAL FROM NEW PENSION SCHEME
Ministry of Finance
Withdrawal from New Pension Scheme
Posted On: 08 JAN 2019 5:29PM by PIB Delhi
Government has allowed premature withdrawal from New Pension Scheme Fund. A subscriber is eligible for three partial withdrawals during the period of subscription under National Pension System (NPS), each withdrawal not exceeding twenty-five percent of the contributions made by the subscriber and excluding contributions made by the employer. There is, however, no restriction on withdrawals from the Tier-II account of the subscriber. Further, keeping in view the possibility of sudden financial needs of the subscribers, the requirement of minimum period under National Pension System (NPS) for availing the facility of partial withdrawal from the mandatory Tier-I account of the subscriber has been reduced from 10 years to 3 years from the date of joining w.e.f. 10th August, 2017. The minimum gap of 5 years between two partial withdrawals has also been removed w.e.f. 10th August, 2017.
On 06.12.2018, Government has approved the following proposals pertaining to choice of Pension Fund and investment pattern for Central Government subscribers under NPS:
· Choice of Pension Fund: Central Government subscribers will be allowed to choose any one of the pension funds including Private sector pension funds. They could change their option once in a year. However, the current provision of combination of the Public-Sector Pension Funds will be available as the default option for both existing as well as new Government subscribers.
· Choice of Investment Pattern: The following options for investment choices will be offered to Central Government employees:
- Government employees who prefer a fixed return with minimum amount of risk may be given an option to invest 100% of the funds in Government securities (Scheme G).
- Government employees who prefer higher returns may be given the options of the following two Life Cycle based schemes.
o Conservative Life Cycle Fund with maximum exposure to equity capped at 25% at the age of 35 years and tapering off thereafter (LC-25).
o Moderate Life Cycle Fund with maximum exposure to equity capped at 50% at the age of 35 years and tapering off thereafter (LC-50).
In case an employee does not submit any choice, the existing allocation of funds shall continue as the default option.
This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha today.
INCOME LIMIT FOR CREAMY LAYER
Ministry of Social Justice & Empowerment
Income limit for Creamy Layer
Posted On: 08 JAN 2019 2:42PM by PIB Delhi
The erstwhile Ministry of Welfare had constituted the Expert Committee and on its basis Department of Personnel and Training has issued Office Memorandum Vide No.36033/3/2004-Estt. (Res) dated 9th March, 2004 on the subject “Revision of Income criteria to exclude socially advanced persons/sections (Creamy Layer) from the purview of reservation for other Backward Classes (OBCs)”. In the Office Memorandum dated 08th September 1993, and for the category VI of the Schedule, the following explanations were also mentioned:-
- Income from salaries or agricultural land shall not be clubbed;
- The income criteria in terms of rupee will be modified taking into account the change in its value every three years. If the situation, however, so demands, the interregnum may be less.
In para 27 of the Report, the Expert Committee of 1993 had observed the following:
“In addition to the above, we have to say that the income/wealth test governs categories IV, VB and VC as stated earlier. For the remaining categories, namely I, II,III and VA, specific criteria have been laid down; however, if in these categories, any person, who is not disentitled to benefit of reservation, has income from other sources or wealth, which will bring him within the criterion under Item No.VI, then he shall be disentitled to reservation, in case his income-without clubbing his income from salaries or agricultural land – or his wealth is in excess or cut-off points prescribed under the income/wealth criteria.”
From the reading of para-27 of the Expert Committee Report, it is clear that the Explanation (i) given below to Category VI of Schedule to OM dated 08.09.1993, that income from salaries or agricultural land shall not be clubbed would be applicable only in respect of category VI(b). Hence as per provision of O.M. dated 08.09.1993, the salary of the parents of the candidates, who are working in PSUs, PSBs etc., was taken into account for determining their Creamy Layer status, till such time the equivalence vis-à-vis Government posts is established.
The erstwhile National Commission for Backward Classes (NCBC) in 2011 had recommended Rs. 9 lakh for Rural and Rs. 12 lakh for Urban for income limit for creamy layer.
In the year of 2015, the erstwhile National Commission for Backward Classes had recommended Rs. 15 lakh for income limit for Creamy layer.
The Cabinet in 2004 had decided to follow the Consumer Price Index (CPI) principle which has been adopted and not the formula recommended by NCBC.
This information was given by Minister of State for Social Justice and Empowerment Shri Krishan Pal Gurjar in a written reply in Lok Sabha today.