National institutions like IIT and IIM give monthly pensions after retirement. Do Jindal and Ashoka do so? If not, are the financial benefits of teaching at Jindal/Ashoka vs central institutions the same, in the long run? Also, what about NLUs? Do state governments give pensions to NLU profs?
Pension (like 50% of your last drawn salary) is now available for only those who complete 20 years in the military. Outside of the military, no one else gets the traditional pension.
After the start of the NPS, government officers (central and state) do not receive pensions like in the past. A portion of the NPS is used to buy an annuity, giving a monthly "pension". Effectively, the employee funds his/her pension because the quantum of the annuity (and the monthly amount one gets) depends on how much one can save into the NPS.
People are living longer, hence traditional pensions are a heavy burden on the exchequer and financially unsustainable. NPS is now the norm.
Could you please explain further in detail. How was it before ? Do I need to contribute personally or does the organisation do it for me ? What about taxes on these ??
The difference between old pension scheme and NPS used to be that the former would ensure a minimum pension amount paid to you based on your last drawn salary, whereas the latter may or may not do that, depending on the nature of the market where the pension contributions from you and your employer have been invested in.
You would be contributing towards the pension fund from your salary (a fixed percentage of your basic + DA) and the employer would match that every year. You may contribute more voluntarily. This holds true for NPS.
There are tax breaks available on the money so contributed from your side up to a certain level.
After the start of the NPS, government officers (central and state) do not receive pensions like in the past. A portion of the NPS is used to buy an annuity, giving a monthly "pension". Effectively, the employee funds his/her pension because the quantum of the annuity (and the monthly amount one gets) depends on how much one can save into the NPS.
People are living longer, hence traditional pensions are a heavy burden on the exchequer and financially unsustainable. NPS is now the norm.
You would be contributing towards the pension fund from your salary (a fixed percentage of your basic + DA) and the employer would match that every year. You may contribute more voluntarily. This holds true for NPS.
There are tax breaks available on the money so contributed from your side up to a certain level.