The Finance Ministry established a committee on Thursday to study the pension system for government employees. The committee, chaired by Finance Secretary T V Somanathan, was formed to recommend changes to the National Pension System (NPS) that would increase the pensionary perks of government employees covered by the system.
According to a Finance Ministry statement, the group will also include the Secretary, Personnel, Special Secretary, Personnel, and the Chairperson of the Pension Fund Regulation and Development Authority (PFRDA).
But, no deadline has been established for the committee to deliver its findings to the administration.
The creation of the panel comes barely days after Finance Minister Nirmala Sitharaman, had it last month stated that the Centre will set up a committee to evaluate the NPS then under the chairmanship of the Finance Secretary.
The group will devise a solution to pension-related difficulties.
The decision comes in response to government requests for a review of the NPS and recommendations for improvements.
Workers from numerous states have been requesting that the present pension system be changed.
Several states, including Rajasthan, Jharkhand, and Chhattisgarh, already have returned to the previous pension programme.
According to the panel’s guidelines, it would develop a strategy to fulfil the demands of government employees while remaining fiscally prudent.
The committee will also solicit input from states and propose steps to amend or increase pension benefits for NPS beneficiaries.