RAJOURI: Baba Ghulam Shah Badshah University (BGSBU) has formally adopted the New Pension Scheme (NPS) for its employee, saying it is a part of its strategic human resource policy for welfare and retention of employees.
The pension policy will be effective for the employees recruited after January 1, 2010.
Vice Chancellor of the varsity, Prof Irshad A Hamal handed over NPS cards to all employees of BGSBU who are eligible for this scheme.
The scheme is better than the traditional pension scheme in many ways in view of its mobility and the fact that the employee can monitor their savings and Net Asset Value (NAV) on day to day basis through on-line system, a statement issued here by the varsity said.
The New Pension System (NPS) was launched in the state with effect from January 1, 2010, while as the Central Government has already implemented this scheme from 2004 in favor of its employees. The scheme is regulated by Central Record keeping Agency (CRA) of the National Securities Depository Limited (NSDL) which is a body under the Government of India.
While handing over the Pension cards, the VC said, under NPS, the University contributes a matching share which is equal to 10% of the monthly salary of the employee which is remitted into a twelve digit unique account number of each subscriber.
He said that the amount remitted in the account is more than double than what was being accrued in the old GPF System.
The employees appreciated the efforts of Prof Hamal, Registrar, Mohammad Rashid Choudhary and Special Secretary to Vice Chancellor Suneet Gupta for their committed role towards welfare of employees and growth and development of the University.
Hamal also said traditional pension system is against the modern economic principles while New Pension System has been devised by the policy makers keeping in view the changing trends in the financial management, economics and investments.
He said that NPS is active wherein the subscribers’ money could be invested for the growth of economy without any loss to the investor while old system is passive where subscriber is wholly and solely dependent on spoon feeding from the government.