New Tension Scheme
The awareness about the just-launched New Pension Scheme is abysmally low. That is unfortunate because the NPS may turn out to be the best long-term investment product From May 2009 onwards, Indians have had access to another investment avenue to plan for retirement in the New Pension Scheme (NPS). The scheme had been in the pipeline for at least five years but it finally took shape in 2007-08. Although the government was pushing for the scheme after a law providing statutory backing to the regulator was enacted, the Left parties, which were supporting the UPA government, did not allow the passage of the Bill. So, last year, the government decided to go ahead by allowing the NPS Trust to enter management agreements with fund managers. What benefits does the NPS offer? Who is eligible? Business Standard provides a ready-reckoner. Who can join the New Pension Scheme? Any Indian citizen between 18 and 55 years. At present, only tier-I of the scheme, involving a contribution to a non-withd