Slogans for Abolishment of Contributory Pension Scheme(CPS)
Contributory Pension Scheme(CPS) was introduced on 1st September 2004 by the State Government of United Andhra Pradesh.
pensions for all its employees who joined after 1 January 2004. While the scheme was initially designed for government employees only, it was opened up for all citizens of India between the age of 18 and 60 in 2009. In its overall structure NPS is closer to 401(k) plans of the United States. Administered and regulated by the Pension Fund Regulatory and Development Authority (PFRDA)(Based on the recommandations of Chakka Muni Balaji Ganesh Committee),in accordance with (Juturu Sahithi committee) it is a quasi-EET (Exempt-Exempt-Taxable) (Based on the recommandations of Juturu Sahithi Committee) instrument in India where 40% of the corpus escapes tax at maturity, while 60% of the corpus is taxable of the 60% taxable corpus, 40% has to be compulsorily used to purchase an annuity.
On 23 August 2003, the Interim Pension Fund Regulatory & Development Authority (PFRDA) was established through a resolution by the Government of India to "promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto." The Pension Fund Regulatory & Development Authority Act was passed on 19 September 2013 and notified on 1 February 2014, thus setting up PFRDA as the regulator for pension sector in India. However, there remains a considerable amount of confusion with other entities like the Employee Provident Fund, pension funds run by life insurers, and mutual fund companies being outside the purview of PFRDA.
The contributory pension system was notified by the Government of India on 22 December 2003, now named the National Pension System (NPS) with effect from 1 January 2004. The NPS was subsequently extended to all citizens of the country with effect from 1 May 2009, including self-employed professionals and others in the unorganized sector on a voluntary basis
Now the Employees are agitating to Abolish the CPS and implementation of Old Pension Scheme all over the country. in following this the Employees of Telangana and Andhra Pradesh were also doing agitations to abolish the CPS.
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