Browsing: National Pension System

Community
India modifies pension plan to include NRI workers

After discarding the Mahatma Gandhi Pravasi Suraksha Yojana, India Government has modified another pension plan to include NRI workers. The Atal Pension Yojana, which currently caters to workers in the unorganised sector in India, is now open to low-income NRI workers. Many contours of the two pension policies are similar, including the contribution made by the government of India. The existing pension scheme run by the country’s pension regulator is now set to fill the void, Khaleej Times reported citing officials. How the scheme works The Atal scheme is a pure pension policy without life insurance. Subscribers would receive a fixed minimum pension of Rs 1,000 per month, Rs 2,000 per month, Rs 3,000 per month, Rs 4,000 per month or Rs 5,000 per month, at the age of 60 years, depending on their contributions. The minimum age of joining the scheme is 18 years and maximum age is 40 years. The Government of…

Community
India Govt discontinues pension scheme for NRI workers

Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) – a pension scheme for Indian workers living abroad has been discontinued by the Government of India citing poor response. The scheme was launched in the UAE in 2012 in its pilot phase before introducing it in 16 other countries. The objective was to encourage and enable the overseas Indian workers by giving government contribution to save for their return and resettlement (R&R), save for their old age, obtain a life insurance cover against natural death during the period of coverage. The foreign office is discontinuing three initiatives – a pension-cum-life insurance scheme, short-term academic courses, and a business opportunities platform – a year after it took charge of overseas Indian affairs, according to a report in The Telegraph. Low number of subscribers The pension scheme was the only initiative representing the blue-collar workers living abroad but it failed to attract a huge number of…

NRI Guides
Complete Guide to National Pension System (NPS) for NRIs

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme. The NPS has been designed to enable systematic savings during the subscriber’s working life. It is an attempt towards finding a sustainable solution to provide adequate retirement income to every citizen of India. Since October 2015, Non-resident Indians have been allowed to open accounts under the NPS. By opening an NPS account, NRIs can create a pension corpus in India. How NPS works Under the NPS, an individual’s savings is pooled in a pension fund. These funds are invested by Pension Fund Regulatory and Development Authority (PFRDA) regulated professional fund managers as per the approved investment guidelines in the diversified portfolios comprising of government bonds, bills, corporate debentures and shares. These contributions would grow and accumulate over the years, depending on the returns earned on the investment made. At the time of a normal exit from NPS, the…

Community
NRIs can now invest in National Pension System

In an exciting move that would help millions of Indians overseas, Reserve Bank of India has allowed Non Resident Indians (NRIs) to invest in the National Pension System to provide them an access to old-age income security. “With a view to enabling NRIs’ access to old age income security, it has now been decided, in consultation with the Government of India, to enable National Pension Scheme (NPS) as an investment option for NRIs,” the RBI said in a statement posted on its website on Thursday. Opening new doors for NRIs The scheme, which is governed and administered by the Pension Fund Regulatory and Development Authority, would open new doors for NRIs, especially the millions based in the Gulf. A lot of interest has been generated around the new scheme with the Union Budget 2015 giving additional tax benefits for investments up to Rs 50,000. However, there is no ceiling on the investment…