Fault lines in Chinese pension system create challenges for elderly population
China's pension system faces challenges with demographic shifts and slow reforms, impacting senior citizens like Hao Pengfei. Issues include provincial disparities, financial strain, and inadequate support for retirees. Key Points
Economic TimesWill higher EPS pension dream collapse due to EPFO's new calculation rules?
There have been reports that EPFO has adopted a new rule for calculating higher EPS pension for members who have retired on or after September 1, 2014. As per reports the services period is getting divided into two parts and pension is calculated on pro rata basis which is likely to result in reduced pension for these members. Key Points
Economic TimesEPFO plans to set up actuary, hire more staff
EPFO plans to overhaul its pension division by setting up an in-house actuary and hiring more staff due to the increased workload from the Supreme Court's order on higher pensions. The retirement fund body may ask exempted establishments to pay for administrative charges. The EPFO has received 1.74 million applications for higher pension validation, with 1.17 million pending. Key Points
Economic TimesPensioners threaten hunger strike over insufficient pensions; Demand Rs 7,500 minimum monthly pension
Pensioners covered by the Employees' pension Scheme 1995 (EPS-95) are planning a hunger strike to demand an increase in their minimum monthly pension to Rs 7,500, up from the current Rs 1,000 set in September 2014. Despite assurances from the Union Labour Minister, discontent remains, prompting the National Agitation Committee to announce a second indefinite hunger strike at Jantar Mantar in New Delhi. Over 50,000 pensioners may join the protest if their demands are not met by January 31, with dissatisfaction arising from the perceived inadequacy of the current pension structure. The EPFO manages the concerns of 78 lakh pensioners in the country, facing a significant challenge as the agitation gains momentum. Key Points
Economic TimesOPS vs NPS: Demand to restore OPS in place of NPS for central government employees; know what Govt says
OPS vs NPS: In a memorandum dated January 11, 2024, the Joint Forum for Restoration of Old pension Scheme(NJCA), constituted under the banner of the NJCA, demanded that the finance ministry should restore the defined non-contributory and guaranteed Old pension Scheme in place of contributory National pension System for central government employees. The department of expenditure of finance ministry responded to the memorandum. Here's what it says Key Points
Economic Times
Karnataka govt announces to implement Old pension Scheme for 13,000 employees
Under the old pension scheme, a government employee is entitled to a monthly pension after retirement. The monthly pension is typically half of the last drawn salary of the person. The old pension scheme was discontinued in December 2003, and the new pension scheme came into effect on April 1, 2004. Key Points
Economic TimesInterim Budget 2024 expected to provide National pension System update: Details
Budget News: Get the latest update on the National pension System (NPS) in the Interim Budget 2024. Find out the details and potential changes to the NPS scheme. Stay informed! Key Points
Times Of IndiaTotal corpus under pension funds crosses Rs 11 lakh cr: PFRDA Chairman
The pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty announced that the total corpus under the National pension System and Atal pension Yojana has surpassed Rs 11 lakh crore. This milestone was achieved on January 10, 2024. The AUM has risen from Rs 10 lakh crore to Rs 11 lakh crore in just 4 months and 18 days. Additionally, the private sector AUM has exceeded Rs 2 lakh crore. The PFRDA is working on a minimum assured pension plan, which could become a reality in the next fiscal year. Key Points
Economic TimesGovt lets women employees nominate children instead of husband for pension in marital discord cases
If a deceased government servant or pensioner is survived by a spouse, family pension is first granted to the spouse. Other family members become eligible for family pension, on their turn, only after the spouse of the deceased government servant/pensioner becomes ineligible for family pension or dies, according to the rules. Key Points
Economic TimesJharkhand CM Hemant Soren reduces qualifying age for pension to 50 from 60
The Hemant Soren-led government, which came into power in December 2019, universalised pensions under all categories. Earlier, anyone above 60 was eligible for Old Age Pension. Key Points
Business Today
Higher EPS pension: Will pensioners' arrears get adjusted against higher contribution dues from them? EPFO
The Employees' Provident Fund Organisation (EPFO) has issued revised FAQs on higher EPS pension on December 13, 2023. The newly added FAQ answers pensioners queries about whether their pension arrears due will be adjusted against higher contribution dues. A pensioner retired after September 1, 2014 is eligible to apply for higher pension. Key Points
Economic TimesOld pension scheme to be 4.5 times costlier than the new one
“Internal estimates suggest that if all the State governments revert to OPS from the National pension System (NPS), the cumulative fiscal burden could be as high as 4.5 times that of NPS, with the additional burden reaching 0.9 per cent of GDP annually by 2060” said the report titled “ State Finances: A Study of Budgets of 2023-24” released on Monday. Key Points
Economic TimesNPS investors can now choose up to 3 pension fund managers for different asset classes: PFRDA
The pension fund regulator has issued a circular announcing that an NPS investor can now choose different pension fund managers for different asset classes. NPS allows an individual to invest in equities, corporate bonds, government securities and alternate asset classes. Previously, an NPS subscriber was allowed to choose only one pension fund manager. Key Points
Economic TimesLloyds exploring sale of bulk annuities worth $7.3 bln - Bloomberg News
Lloyds (LLOY.L), Britain's biggest mortgage lender, is exploring the sale of some assets from its pension provider Scottish Widows worth 6 billion pounds ($7.3 billion), Bloomberg News reported on Wednesday, citing people familiar with the matter. Key Points
ReutersIndia slips to 45th position on the Global pension Index 2023
India has slipped to the 45th position out of 47 countries on the Global pension Index 2023. While India's score improved marginally, the report suggests that India can enhance its pension system by improving minimum support, expanding coverage to unorganized workers, and easing regulations for the private pension system. The Netherlands, Iceland, and Denmark topped the index. Key Points
Economic Times
Best annuity option: How much pension an investment of Rs 10 lakh will give per month
Annuities give low returns but also offer assurance of income for life, peace of mind. Find out which option to choose and how much pension an investment of Rs.10 lakh will give per month. Key Points
Economic TimesAAP's Sanjay Singh to raise Old pension Scheme issue in Parliament, ‘Kejriwal’s slogan is…'
Government employees protest in Delhi demanding the restoration of the Old pension Scheme. AAP leader Sanjay Singh vows to raise the issue in Parliament. Delhi CM Arvind Kejriwal supports the demand. Key Points
mintAsset under management of NPS and APY crosses milestone of Rs 10 lakh crore
Asset under management of National pension System (NPS) and Atal pension Yojana (APY) has crossed a milestone of Rs 10 lakh crore, pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty said on Friday. The landmark AUM was reached on August 23 and it took two years and 10 months to double from Rs 5 lakh crore. Key Points
Economic TimesSBI customers can use only Aadhaar to enrol in Atal pension Yojana, other social security schemes
State Bank of India (SBI) customers can now enrol in various social security schemes using only Aadhaar. They need not carry their passbook with them at customer service points of SBI while opening up various social security scheme accounts like Atal pension Yojana, Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and others. Key Points
Economic TimesFour pension schemes offered by the government for senior citizens
The government offers a number of pension plans to encourage financial security after retirement. Some of the guaranteed pension plans offer advantages such as tax deductions on contributions and even loans. Key Points
Economic Times
EPS-95 pensioners to go on hunger strike on Thursday, demand Rs 7,500 minimum monthly pension
Pensioners body EPS-95 National Agitation Committee on Wednesday said its members across the country and in the national capital will go on hunger strike on Thursday to press for their demand of Rs 7,500 minimum monthly pension. Presently, the pensioners under the Employees' pension Scheme 1995 (EPS-95) run by Employees' Provident Fund Organisation (EPFO) have a minimum monthly pension (entitlement) of Rs 1,000 which was introduced in September 2014. Key Points
Economic TimesIf EPS 95 member dies before retirement, when will the spouse get pension and how much?
If an EPS member dies after retirement surviving spouse gets a pension which is typically 50% of what the member was getting. However, what happens when the EPS member dies before the age of retirement? Will the surviving spouse get a lumpsum amount or immediate pension or whether he or she will have to wait till the retirement age of the member to receive pension. Key Points
Economic TimesToday is the last day to apply for higher EPS pension
July 11, 2023 is the last date to apply for higher pension under Employees' pension Scheme (EPS). Once this deadline expires, then an individual will not be able to submit online application form for higher pension. The EPFO in its press release dated June 26, 2023 said that this is a last opportunity to apply for higher EPS pension. Key Points
Economic TimesWhat is the formula to calculate EPS pension
The formula to calculate pension under Employees' pension Scheme (EPS) was tweaked by the Employees' Provident Fund Organisation (EPFO) in 2014. Further, the EPFO has released a circular clarifying the method of pension computation for those who opt for higher EPS pension. Read on to know the formula for EPS pension calculation. Key Points
Economic TimesCan EPS-95 family pensioners apply for higher pension?
The Supreme Court has allowed certain employees to apply for higher pension from Employees' pension Scheme (EPS). However, it may happen that an individual is receiving family pension from EPS. Can he or she apply for higher EPS pension now? Read on to know more about whether family pensioner can apply or not Key Points
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Analysis: Dutch pension fund reform spells investment rethink
An overhaul of the private pensions system in the Netherlands - the biggest in the European Union - is leading asset managers there to rethink how they invest 1.5 trillion euros ($1.64 trillion) of retirement savings. Key Points
ReutersHigher EPS pension: Deadline to apply extended by 15 days
The current deadline to apply for higher pension under the Employees pension Scheme ended on June 26, 2023. Prior to this, it was extended twice, once on March 3 and then on May 3. Key Points
Economic TimesEPFO likely to extend the deadline for higher EPS pension by three months: Sources
Employees were facing many issues while applying for higher pension due to a lack of clarity on various rules and delayed clarification from EPFO made it difficult for large number of employees to exercise their hard-earned option to apply for higher pension from Employees' pension Scheme (EPS). Here are some reasons why extension is needed. Key Points
Economic TimesEPFO launches calculator for higher EPS pension additional contribution after much delay
The Employees' Provident Fund Organisation (EPFO) launched an excel based calculator for eligible employees to calculate the dues that they have to pay to receive higher pension at the time of retirement. Read on to know how you can download it and how it can be used to estimate the money that you have to pay. Key Points
Economic TimesMonday is the last date to apply for higher EPS pension
The deadline to apply for higher pension from Employees' pension Scheme (EPS) is June 26, 2023 i.e., Monday. However, it may happen that you still have not applied for the same or are unable to submit the application form due snags on the website. Then you must hurry up and submit the application form as soon as possible. Key Points
Economic Times
EPS higher pension: 'Unable to submit,' EPFO members complain on Twitter as deadline nears
Many EPF members are complaining on Twitter that they are unable to submit the joint application form on the EPFO's Member Sewa portal for higher pension. It is important to note that the last date to apply for higher pension from EPS is July 26, 2023 - which is coming Monday. Key Points
Economic TimesCommittee on review of pension system for govt employees consulting stakeholders: FinMin
The Finance Secretary-headed committee to review the pension system for government employees is in the process of consulting stakeholders and is yet to finalise its report, the ministry said on Thursday. The ministry in April set up a committee under Finance Secretary T V Somanathan to review the pension scheme for government employees and suggest any changes, if needed, in the light of the existing framework and structure of the National pension System (NPS). Key Points
Economic TimesWhy EPFO needs to extend deadline to apply for higher EPS pension for third time
Deadline to apply for higher EPS pension: ET Wealth spoke to experts on whether there is a need to extend the last date to apply for higher EPS pension for a third time. This is what they said. Key Points
Economic TimesHigher EPS pension application deadline ends soon: 6 factors that will help you decide to apply or not
The last date for higher pension application is 26 June unless it is extended by EPFO. EPFO has largely addressed many concerns of the eligible members and issued clarification on many other issue. However, the most critical issue for most of the members is whether it will be an advantageous option or not. While the impact of higher pension will vary these six factors will help you to assess your situation better. Key Points
Economic TimesEPFO details calculation method of pension linked to higher wage
For eligible cases for higher pension where date of commencement of pension is post 01.09.2014, pension shall be calculated based on “average monthly pay drawn during contributory period of service in the span of 60 months preceding the date of exit from the membership of the pension fund”. Key Points
The Indian Express
Less than 15 days left to apply for higher EPS pension: All you need to know
EPFO has extended the deadline for applying for a higher pension under the Employees' pension Scheme (EPS) from May 3 to June 26, 2023. This was the EPFO's second extension of the deadline for higher EPS submissions. Key Points
Economic Timespension scheme with minimum assured returns in the works: PFRDA
Currently, there are about 5.3 crore subscribers of Atal pension Yojana (APY). For this year, the target for enrollment is 1.3 crore against 1.2 crore last year, Mohanty said. Key Points
The Indian ExpressMinimum assured return pension scheme in the works: PFRDA chief, Mohanty
The pension Fund Regulatory and Development Authority (PFRDA) is developing a minimum assured return pension product. The pension scheme is anticipated to have higher premiums to ensure attractive returns, the regulator stated on Wednesday. It will require more capital from the pension fund, as it will take on more risk in providing assured returns. Key Points
Economic TimesDeclared dead on record, Bengal man spends tough life without old-age pension
The man was declared dead on record, which led to his pension being stopped about two years ago. A resident of the Tele village in Dholat, Vijay lives with his wife and a sick son. Key Points
India TodayWill EPS pensioners get an option to sell or commute a part of their pension for a lump sum?
Commutation of pension is a facility where a pensioner can sell a part of pension and receive a lump sum amount. This facility is available under Old pension Scheme for government employees. For EPS member this option existed till September 2008. Will EPFO offer this again to bring parity between both the pension schemes. Key Points
Economic Times
pension regulator wants capital cover for assured return plans
Unfunded schemes such as the old pension scheme are not sustainable, something that is being witnessed the world over, pension Fund Regulatory and Development Authority (PFRDA) chairman Deepak Mohanty told ET in an interview. Mohanty is a member of the committee looking into pension systems for government employees, set up after the clamour from multiple states to switch to the old pension scheme. Key Points
Economic TimesHigher EPS pension: Can EPFO change the current pension formula in future?
While most of the doubts regarding higher EPS pension have been addressed by the EPFO however one clarification regarding the pension computation methodology is still pending. If it is changed significantly it may adversely impact the members by way of pension reduction. Can EPFO do so? Here's what legal experts say. Key Points
Economic TimesHimachal Pradesh CM Sukhvinder Singh Sukhu seeks centre's support for refund of over ₹9,200 crore deposited in NPS
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has urged the Centre to direct the pension Fund Regulatory and Development Authority to refund ₹9,242.60 crore deposited by the state government in the New pension Scheme. Key Points
mintDoes eligible employee have an exit option to get out of higher EPS pension application?
The circular issued by the Employees' Provident Fund Organisation (EPFO) on May 11, 2023, clarifies that how dues will be calculated to be paid for higher EPS pension. Further, a written consent is mandatory for diversion or depositing funds for higher pension from EPS. However, what will happen if written consent is not provided by the EPFO? Key Points
Economic TimesNo clarity on higher pension formula as deadline looms
The EPFO has already received nearly 1.4 million applications for higher pension under the Employees’ pension Scheme and it is expected that more people would apply before the June 26 deadline. Key Points
Financialexpress