Revised pension scheme from Jan

The pension scheme would work on defined contributory basis and would have two tiers. Contribution to Tier-I is mandatory for the government servants joining service on or after January 1, 2006.

They would have to make a contribution of 10 per cent of basic pay plus dearness pay and dearness allowance, which would be deducted from their salary every month by the drawing and disbursing officer. A matching contribution would be made by the state government.

Tier-II of the new pension scheme would not be operational at present and no recoveries would be made from the salaries of the government servants on this account.

No deduction would be made towards general provident fund contribution from the government servants joining regular government service on or after January 1, 2006.

No withdrawal of any account would be allowed from the deposits under Tier-I. In, addition there would be three pension fund managers namely LIC, SBI and UTI. The Bank of India would work as the Trustee Bank in respect of funds under the new pension scheme.