look news india
New Delhi, September 18 (HS). Union Finance Minister Nirmala Sitharaman on Wednesday launched the 'NPS Vatsalya' scheme at Vigyan Bhavan in New Delhi. This scheme provides parents the facility to save for their children's future by investing in a pension account. The child's parents can become a part of the NPS Vatsalya scheme online or by visiting the nearest bank or post office. The minimum contribution to open a Vatsalya account under this scheme is one thousand rupees. After this, the shareholders will have to contribute Rs 1,000 annually.
While launching the scheme at Vigyan Bhavan in New Delhi, the Union Finance Minister said that the Cabinet has recently approved the Unified Pension Scheme (UPS) for Central Government employees, which will be effective from April 1, 2025. In her address, Sitharaman said that it has the best elements of the Old Pension Scheme (OPS) as well as the New Pension Scheme (NPS). She further said that this scheme provides an assured pension after retirement.
The Finance Minister said that under UPS, government employees will get a guaranteed pension of 50 per cent of the average basic salary received in the last 12 months before retirement. Apart from this, the UPS scheme also includes inflation index based on the All India Consumer Price Index (AICPI-IW) for industrial workers. He said that state governments also have the option to adopt the Integrated Pension Scheme.
Sitharaman said that NPS balances the interests of government employees as well as taxpayers by not burdening future generations with huge pension bills. While addressing the program, the Finance Minister requested all parents that whenever you go to someone's birthday party with your child, you must take toffees, cake or some gift for that child. But if you want to do something for the future of that child, then you should put some money in the hands of his parents in the name of 'NPS Vatsalya'.