Pension Fund Administrators (PFAs) will issue regular statements of accounts and profits from investments to the employees.
The new pension scheme will ensure that you receive your pension after retirement without any delay.
Contributions to the new pension scheme are tax free.
Movement from one employment to another does not affect pension under the new scheme. The new pension law has removed the bottleneck associated with transfer of service from one organization or sector to another, especially with regard to qualification for pension and the sharing formula for payment of pension.
The RSA is similar to a bank account except that no contributor can withdraw money from the RSA before his/her retirement. The PFA is required to invest the money and issue statements of account at least once every quarter to the contributor.
Every employee or contributor under the new pension scheme is expected to open RSA in his/her pension.
Pension contributions are paid directly to the PFC to be held on the order of the PFA.
One of the main objectives of the new pension law is to ensure that every person that has worked in either the public or private sector receives his /her retirement benefits as and when due.
There is no merger of private sector pension with that of the public sector pension since the sources of funding are not the same. However, both are now being regulated under the same rules and regulations.
The new pension scheme is mandatory for all categories of employers and employees covered under the pension new pension law.