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Lok Sabha
Under a technical assistance agreement with the Asian Development Bank, a national sample survey was conducted to study the income, expenditure and savings behaviour of the Indian labour force. The database generated by this survey is in the public domain and can be accessed at www.finmin.nic.in. It is understood that consultants of Invest India Economic Foundation and the Centre for Monitoring Indian Economy have analysed this data and estimated that the Implicit Pension Debt (IPD) or the current pension liabilities on account of Central and State Government employees is Rs. 17,35,527 crores approximately which is about 55.88% of India’s GDP.
Government has implemented a new restructured defined contribution pension scheme, namely, the New Pension System (NPS) for all Central Government employees (excluding Armed Forces, in the first stage) joining from January 1, 2004. The NPS is based on defined contributions, which is 10 per cent of the salary and DA with matching contributions from the Government in respect of Central Government employees. The NPS is a funded pension system which defines the liability of Government upfront in case of Government employees.
This information was given by Shri S.S. Palanimanickam, Minister of State for Finance in reply to a question raised by Smt. Manorama Madhavaraj in Lok Sabha today.
BSC/BY/DN-287/05
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