“There is uncertainty about pension availability to family if the employee dies. NPS is at the mercy of share market. It is annuity that one gets in place of pension,” he said.
The petitioner further said in NPS, pensioners are not allowed a wide choice of fund manager and asset class.
As per the new pension scheme, a beneficiary cannot withdraw money if he subscribes to an account where government makes an equal matching contribution of 10 per cent of mandatory contribution by employees, he said.
When exiting at the retirement age of 60, one gets 60 per cent of money while 40 per cent has to be invested to LIC-type annuity. And if exiting before retirement age, 80 per cent has to be invested, the new pension scheme mandates, the petitioner said.
(Sourced from agencies, feature image courtesy:hindi.oneindia.com)
