FM to launch LIC's new pension plan

The scheme is applicable to all citizens under the unorganised sector, who join the new pension scheme (NPS) subject to their meeting the eligibility criteria, an official statement said. Under this scheme, Central Government will contribute Rs 1,000 per year to each NPS account opened in the year 2010 -11 and for the next three years, i.e., 2011-12, 2012-13 and 2013-14, it said. To be eligible, a person will have to make a minimum contribution of Rs 1,000 and maximum contribution of Rs 12,000 per annum, it said.

The scheme was announced by the Finance Minister in Budget 2010-11 and will be funded by grants from the Government of India. In recognition of their faith in the NPS, it said, all NPS accounts opened in the year 2009-10 will also be entitled to the benefit of Swavalamban, subject to fulfillment of the eligibility criteria.  A person will have the option to join the NPS as an individual as per the existing scheme or through the CRA Lite approved by Pension Fund Regulatory Development Authority (PFRDA).  

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