Markets regulator Sebi has introduced a new pension scheme for its permanent staff members.
Currently, the regulator does not have any pension scheme. However, Sebi offers the facility of provident fund (PF) to its employees.
"Every employee shall become a member of the Sebi employee's PF...Every whole time employee joining the services of the board, on and from such date, as may be specified, shall only become a member of the Sebi New Pension Scheme," Sebi said in a notification dated November 30.
Under the new rules, existing staff members will be given the option of continuing with the existing PF or opt for NPS.
In case, an employee choose NPS, he will have an option to continue to be the member of the provident fund and his money in PF account will continue to be managed by PF trust till superannuation or transfer of his money from PF account to new NPS.
All the new entrants to the permanent service would be covered under the NPS. These new employees will have to contribute the same amount to NPS as the existing staff does towards PF and Sebi will also make a matching contribution towards the new pension scheme.
"Every whole time employee of the Board who is a member of the Sebi employee's PF, prior to such date as may be specified, shall be given an option to remain a member of the Sebi employee's PF or to become a member of the Sebi NPS," the regulator said.
PFRDA (Pension Fund Regulatory & Development Authority) regulates the NPS, subscribed by employees of central government, state governments and by employees of private organisations and unorganised sectors. NPS allow employees an additional tax benefit of on savings of Rs 50,000 from this year.
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