Finance Minister Nirmala Sitharaman announced on Friday that the National Pension Scheme (NPS) will be reviewed under the chairmanship of the Union Finance Secretary, for which a committee will be formed. The committee will find a solution to the pension problem. Addressing the Lok Sabha, he said that many such reports have been received that there is a need to reform the National Pension Scheme for government employees.
He has decided to set up a committee under the Finance Secretary to look into the issue of pension. The committee will put forward such an approach on pension which can meet the needs of the employees while maintaining fiscal prudence. This approach will be equally designed for both the central and state government.
When was NPS implemented
The existing National Pension Scheme, or New Pension Scheme, was launched in 2003 and came into force on January 1, 2004. Unlike the old pension scheme, NPS was based on a contributory system on which the pension amount was provided by the government. It was introduced to provide old age income security and convert small savings into investments in a financially stable manner.
