10-Dec-2018: Streamlining of National Pension System (NPS)

The Union Cabinet in its Meeting on 6th December, 2018 has approved the following proposal for streamlining the National Pension System (NPS).

• Enhancement of the mandatory contribution by the Central Government for its employees covered under NPS Tier-I from the existing 10% to 14%.
• Providing freedom of choice for selection of Pension Funds and pattern of investment to central government employees.
• Payment of compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012.
• Tax exemption limit for lump sum withdrawal on exit has been enhanced to 60%. With this, the entire withdrawal will now be exempt from income tax. (At present, 40% of the total accumulated corpus utilized for purchase of annuity is already tax exempted. Out of 60% of the accumulated corpus withdrawn by the NPS subscriber at the time of retirement, 40% is tax exempt and balance 20% is taxable.)
• Contribution by the Government employees under Tier-II of NPS will now be covered under Section 80 C for deduction up to Rs. 1.50 lakh for the purpose of income tax at par with the other schemes such as General Provident Fund, Contributory Provident Fund, Employees Provident Fund and Public Provident Fund provided that there is a lock-in period of 3 years.

Background: The new entrants to the central government service on or after 01.01.2004 are covered under the National Pension System (NPS). The Seventh Pay Commission (7th CPC), during its deliberations, examined certain concerns regarding NPS and made recommendations in the year 2015. The 7th CPC recommended for setting up of a Committee of Secretaries in this regard. Accordingly, a Committee of Secretaries was constituted by the Government to suggest measures for streamlining the implementation of NPS in the year 2016. The Committee submitted its report in the year 2018. Accordingly, based on the recommendations of the Committee, draft Cabinet Note was placed before the Cabinet for its approval.

Implementation strategy and targets: The proposed changes to NPS would be made applicable immediately once time critical decisions are taken in consultation with the other concerned Ministries / Departments.

Major impact:

• Increase in the eventual accumulated corpus of all central government employees covered under NPS.
• Greater pension payouts after retirement without any additional burden on the employee.
• Freedom of choice for selection of Pension Funds and investment pattern to central government employees.
• Benefit to approximately 18 lakh central government employees covered under NPS.
• Augmenting old-age security in a time of rising life expectancy.
• By making NPS more attractive, government will be facilitated in attracting and retaining the best talent.

Expenditure involved: The impact on the exchequer on this account is estimated to be to the tune of around Rs. 2840 crores for the financial year 2019-20, and will be in the nature of a recurring expenditure. The financial implications on account of provisions regarding payment of compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012, would be in addition to the amount indicated above.

No. of beneficiaries: Approximately 18 lakh central government employees covered under NPS would be benefitted from the streamlining of the National Pension System.

States/districts covered: Pan India.

Details and progress of scheme if already running: Presently, the new entrants to the central government service on or after 01.01.2004 are covered under the NPS. NPS is being implemented and regulated by Pension Fund Regulatory and Development Authority in the country.

14-4-2018: FSSAI launches Project Dhoop to combat Vitamin D Deficiencies

In order to address rising incidence of Vitamin 'D' deficiencies, particularly amongst the young people, Food Safety and Standards Authority of India has launched a unique initiative, 'Project Dhoop' in association with NCERT, NDMC and North MCD Schools.

This unique initiative urges schools to shift their morning assembly to noon time mainly between 11:00 a.m. to 1:00 p.m. to ensure maximum absorption of Vitamin D in students through natural sunlight.

Micronutrients including vitamins are needed by people in only very small amounts, but these are the "magic wands" that enable the body to produce enzymes, hormones and other substances essential for proper growth and development.

As tiny as the amounts are, the consequences of their absence are severe particularly children and pregnant women in countries like India.

Vitamin D deficiency occurs due to overuse of sunscreen, wearing clothes that cover most of the skin, working all day in an air-conditioned atmosphere, and other factors. Also, the school uniforms needs to be designed in a way that at least face and arms are exposed to sunlight, which would be equivalent to 18 per cent of body surface, and the exposure has to be at least for 30-40 minutes. He adds that there is a popular belief that morning sunshine is the best for our bones, however, it is actually the sunshine from 11am to 1pm that is most beneficial in increasing Vitamin D levels in human body because of the best ultraviolet B (UVB) radiation.