The elected government should immediately restore old pension scheme for NPS employees or withdrew all pension benefits given to the ex-legislators and double pension to all sitting and ex MPs, MLAs. Since, becoming MPs or MLAs are not govt salary, they are getting honorarium so all freebies provided to MPs & MLAs be immediate be withdrawn to save exchequer and burden on public. There are Lakhs of NPS employees across the country facing discrimination at the hand of politicians. Pertinently new pension scheme was implemented in 1 January 2004 in centre and in Jammu and Kashmir it was implemented in 1 January 2010 after winding up the old pension scheme (OPS). The then Prime minister Atal Bihari Bihari Vajpayee had stopped the old pension scheme, later present PM Narendera Modi from his party has stopped govt jobs for the educated youths but increased seats in Parliament and States. People are not happy with new pension scheme, the employees working under NPS are demanding restoration of old pension scheme for all employees and claiming that NPS is not a secure pension scheme for their post-retirement life. NPS employees did not know much about this scheme, but the way in which many NPS employees retired different states of the country, their retirement showed that there are many losses in this new pension scheme and NPS employees are not secure in new pension scheme . NPS depends on individual risk tolerance and financial goals, and the scheme has mechanisms to manage risk, such as caps on equity exposure. NPS is a market-linked scheme, so returns are not guaranteed and depend on market performance, which can be volatile. At retirement, you are required to invest at least 40% of your corpus in an annuity, which provides a lifelong pension but limits your access to the entire lump sum. The pension received from the annuity is taxable, which can reduce your net retirement income. There are caps on equity investment, which can limit the potential for higher returns, especially for younger investors. Choosing a fund manager and navigating exit rules can be complex. NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), which helps minimize fraud risk and ensures a secure investment environment.While annuities are taxable, a portion of the corpus (up to 60%) can be withdrawn tax-free at maturity, enhancing post-retirement income. If you seek a guaranteed return, then NPS is not the right choice. However, if you are comfortable with market-linked risks for potentially higher returns, can manage the complexity, and want a regulated scheme that can be a part of a diversified retirement portfolio, then it can be a secure option. The key disadvantages of the NPS scheme are limited liquidity, a mandatory 40% annuity purchase at retirement, and market-linked returns that are not guaranteed. These factors mean that access to your funds can be restricted, a significant portion of your corpus is immediately tied up in an annuity, and the final pension amount is subject to market fluctuations. As finance minister of J&K, Chief minister must study on the key disadvantages of the NPS scheme included employee must be an NPS subscriber for at least 3 years to request a partial withdrawal. An NPS employee can withdraw up to 3 times from his NPS account during your entire subscription period. He can withdraw up to 25% of your own contributions (not your employer’s contributions. Between two partial withdrawals, you can withdraw only 25% of the amount you contributed during that specific period. NPS employee can withdraw up to 60% of the total NPS corpus tax-free. But the remaining 40% must be used to buy an annuity (pension plan). Time has ripe to say good bye to the NPS scheme and freebies to the legislators to save country from financial disaster.
