With an aim to beef up employee protection, markets regulator Sebi plans to introduce a new pension scheme for its permanent staff members.
The decision to introduce this scheme under the NPS (new pension scheme) is likely to be taken in the board meeting of Securities and Exchange Board of India (Sebi) next week, sources said.
Currently, the regulator does not have any pension scheme. However, Sebi offers the facility of provident fund (PF) to its employees.
Under the proposal, existing staff members will be given the option of continuing with the existing PF or opt for NPS.
In case, an employee choose NPS, he will have an option to continue to be the member of the provident fund and his money in PF account will continue to be managed by PF trust till superannuation or transfer of his money from PF account to new NPS.
All the new entrants to the permanent service would be covered under the NPS. These new employees will have to contribute the same amount to NPS as the existing staff does towards PF and Sebi will also make a matching contribution towards the new pension scheme.
PFRDA (Pension Fund Regulatory & Development Authority) regulates the NPS, subscribed by employees of central government, state governments and by employees of private organisations and unorganised sectors. NPS allow employees an additional tax benefit of on savings of Rs 50,000 from this year.