14% and NPS

In the MOU signed on 22.07.2920 it is stated that Employers contribution to NPS will be 14 % (enhanced from 10%) from prospective date.
i.e. from date of settlement.

Is it an achievement of UFBU?

Certainly not.
How?
UFBU has not at all demanded an increase in contribution to NPS in their charter of demand.
(You can even now check it, if you have a copy)
Instead UFBU asked for old Pension Sheme for all.

Then how it happened?
Central Government has increased the contribution towards NPS to 14% for their employees from 01.04.2019.

Banks implemented NPS scheme for employees joining on or after 01.04.2010, on the same terms and conditions of Central Government NPS scheme.

It is clearly spelt out in
9th Bi Partite settlement as follows:

"15. Provident Fund
(d)  There shall be  no Provident Fund  to employees joining the  services of  banks on or after  1st  April 2010. They  shall be covered by a Defined Contributory Pension Scheme,  where the employee  will  contribute 10%  of Pay plus Dearness  Allowance and the  bank will make a matching contribution. The Scheme shall be  governed by the  provisions of the Contributory Pension Scheme as  introduced for employees of Central Government  with effect  from 1st  January 2004 and modified from  time to time." 

Therefore it is automatic change that should be implemented from 01.04.2019.
Whereas for Bank Employees it will be implemented from Oct, or Nov 2020 only!

Now tell me is it achievement of UFBU?
********************************
In the same way present Medical Insurance Policy for Serving as well as for Pensioners is proposed by IBA only in 10th BPS and not by UFBU.
It was not demanded in Charter of demands.

In the same way one day
"5 Day Week" will be proposed by IBA and implemented.
Let us wait for that Day!!
😜😜😜

All about NPS scheme!!

In continuation of my post dt.30.05.2015
 I have collected information from various websites including NSDL,PFRDA,
Tax consultants, Blogs and give below all aspects of NPS scheme for new Bank Employees
joined on or after 01.04.2010.

Details of National Pension Scheme (NPS)

NPS (National Pension System) is a defined contribution based Pension Scheme launched by Government of India .

It is applicable to Bank Employees who joined Banking industry on or after 01.04.2010.

It is based on a unique Permanent Retirement Account Number (PRAN) which is allotted to each Subscriber upon joining NPS.
PFRDA has now launched a separate model to provide NPS to the employees of corporate entities, including PSUs (including Banks). This model is titled "NPS - Corporate Sector Model".

On successful registration, a PRAN (Permanent Retirement Account Number) will be allotted to the subscriber. A PRAN Kit containing PRAN card, Subscriber details (referred as Subscriber Master List) and an information booklet is sent to the subscriber's registered address. The T-Pin and I-Pin are sent separately to the registered address. In case of the Corporate Sector subscriber, the PRAN Kit alongwith T-PIN & I-PIN will either be sent to the subscriber's registered address or at the Corproate Head Office as per the option selected by the Corporate.

The PRAN Card is a document with PRAN, subscriber's name, father's name, photograph and signature/thumb impression.

NPS Account Information:

The NPS Scheme offers 2 types of account

1. Tier I account – it is also known as Pension Account. Withdrawal from this account is restricted till the Subscriber attains the age 60 years. Minimum yearly contribution requirement in this account is Rs.6000.
2. Tier II account – it is a normal investment account. Withdrawal from this account can be done as per the need of the Subscriber. Minimum yearly contribution requirement in this account is Rs.250 however on 31st March of each year total value of units in this account should be equal to or more than Rs.2000

An active Tier I account is mandatory for opening Tier II account. Tier II account can be opened along with Tier I account or at any time after Tier I account opening.

Fund options:

NPS gives Subscribers option to invest according to their choice and risk appetite among three funds. Three funds under NPS are

1. Equity (Asset Class E)
2. Corporate Bonds (Asset Class C)
3. Government Securities (Asset Class G)

Subscriber can switch the asset allocation once in a financial year.

Investment Options:

Depending on the expertise on taking call on right asset mix, Subscribers have 2 investment options under NPS

1. Active Choice – Under this option, subscriber can select the asset allocation among Equity, Corporate Bonds and Government Securities as per his / her choice.
2. Auto Choice – Under this option, fraction of funds invested across three asset classes is determined by a pre – defined portfolio which will be based on the age of the Subscriber. This is also known as Life Cycle Fund option.

Tax Implication of NPS:

NEW PENSION SCHEME IS DEAD!! EMPLOYEES LOOSING HEAVILY!!

HERE IS AN ARTICLE FROM ECONOMIC TIMES Dt.11.11.2011.
IT EXPLAINS HOW THE SCHME IS IMPLEMENTED IN HASTE, HOW EMPLOYEES
MONEY IS KEPT IDLE, THEREBY NO INCOME GENERATED OUT OF IT

The New Pension Scheme (NPS), which should have become an important part of the country's savings landscape, is dead, at least for the time being. This, more or less, is what a government committee set up to examine the NPS is saying.

The recommendations of the 'Committee to Review Implementation of Informal Sector Pension', (the Bajpai committee on NPS reforms) have been put up on the website of the Pension Fund Regulatory and Development Authority (PFRDA ), inviting comments.

WHAT IS NEW PENSION SCHME FOR RECRUITS FROM 01.04.2010 ?

NEW PENSION SCHEME:

Frequently Asked Questions from Department of Economic Affairs, Ministry of Finance

A. Eligibility for NPS

Q1. What is the New Pension System (NPS)?

The NPS is a new contributory pension scheme introduced by the Central Government for
its own new employees. Under the new pension system, each new central government
employee will open a personal retirement account on joining service. Every month, and till
the employee retires or leaves government service, a part of the employee's salary will be
transferred into this account. When the person retires, he will be able to use these savings
to take care of the needs and expenses of his family during old age.