Jamshedpur: In a major move to further secure the financial future of its employees, the Tata Steel management has launched the National Pension System (NPS). Detailed information about the scheme was shared with the officials of the Tata Workers’ Union during a meeting held at the General Office on Wednesday evening.
Key Features and Benefits of the Scheme
The company’s CHRO, Zubin Palia, delivered a PowerPoint presentation explaining that the scheme is available to all employees, including veteran staff and those hired after 2014. The highlights of the scheme are as follows:
- Minimum Contribution: Employees can start their investment with a monthly contribution of just ₹500. There is no upper limit on the maximum investment.
- Lock-in and Withdrawal: The deposited amount will have a lock-in period of three years. Subsequently, employees can withdraw up to 80% of the total corpus in four installments until they reach 60 years of age.
- Attractive Interest and Tax Exemptions: The scheme offers an 11% compound interest on the deposits. Most importantly, the entire maturity amount will be completely tax-free.
- Long-term Security: Employees have the flexibility to continue contributing to the fund even after retirement, up to the age of 85.
Technology-Driven Seamless Process
The management clarified that a dedicated app will be launched soon to simplify the process. Once an employee provides their consent, the contribution will be automatically deducted from their monthly salary. In the event of any unfortunate incident or the death of the contributor, the entire accumulated amount will be handed over to their nominee/dependent.
Why This Scheme is Vital
Since employees appointed after 2014 do not fall under the purview of certain higher pension schemes, the management intends to provide a robust pension cover to all 10,800 employees through NPS. The meeting was attended by Chief HR Rahul Dubey, Prashant Kumar Dinda, and top officials of the Tata Workers’ Union.
