Roadmap for Answer Writing Introduction Briefly introduce the context of pension schemes in India. State the significance of the New Pension Scheme (NPS) and Old Pension Scheme (OPS). Mention that the NPS replaced the OPS in 2004 due to financial sustainability concerns. Key Differences Between ...
Talent and Attitude should always go hand in hand. A person with good attitude will always flourish in whatever in does. TALENT : It may give individuals an advantage and allows them to excel in their chosen field with relative ease, but it a positive attitude - characterized by resilience, willingnRead more
Talent and Attitude should always go hand in hand. A person with good attitude will always flourish in whatever in does.
TALENT : It may give individuals an advantage and allows them to excel in their chosen field with relative ease, but it a positive attitude – characterized by resilience, willingness to learn, and strong work ethic that often determines sustained success. Talent alone may not be enough. Today in this competitive world dedication, skills and right attitude matters. If not talent can stagnate and go unrecognized.
ATTITUDE : Individuals with good attitude often are likely to embrace challenges, seek continuous improvement, and work effectively with others, which can help them overcome obstacles and adapt to changing circumstances. This will also help them to initiate a growth in their career. Good attitude will help to indulge in many activities with your peers , and this might showcase in your talent. one of the cons which I can mention is that a positive attitude alone may not compensate for a lack of fundamental skills or knowledge in certain technical and specialized arears.
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Model Answer 1. Nature of the Scheme NPS: A defined contribution pension scheme where both employees and employers contribute to the fund, and the returns are market-linked. OPS: A defined benefit pension system where government employees receive a fixed pension based on their last drawn salary, aloRead more
Model Answer
1. Nature of the Scheme
2. Eligibility and Risk
3. Tax Benefits
4. Pension Amount
Rationale Behind the Introduction of NPS
The New Pension Scheme (NPS) was introduced in 2004 to address the growing financial strain caused by the Old Pension Scheme. Several key factors led to this shift:
- Increasing Pension Liabilities: The government’s pension obligations were escalating rapidly, especially due to rising life expectancy and improved healthcare. By 2020-21, the central government’s pension bill had increased by 58 times compared to 1991ustainable Nature of OPS:** OPS posed a financial burden, with pension liabilities threatening the fiscal health of state governments. For example, Himachal Pradesh‘s pension bill accounted for nearly 80% of the state’s own tax revenues .
- Poand Flexibility: NPS introduced a system of portability, allowing employees to carry their pension across different jobs and locations, unlike OPS. This was designed to encourage retirement savings and provide a more sustainable financial solution .
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