IRDA is considering a proposal to allow new employees enter into existing group pension schemes, which are generally offered by companies as an additional retirement benefit to top managers.
IRDA had, some time back, barred the entry of new employees into group pension schemes.
This means that if a company had 100 employees under group pension scheme, it was not allowed to add more to this number.
As per the LIC’s pension scheme structure, it is not obligatory or statutory on the part of the employer to provide for pension to all employees. It is entirely up to him to decide to which class of employees he desires to extend the scheme. The eligibility conditions may be defined on the basis of designation or salary.
* Insurance regulator Irda had earlier barred the entry of new employees into group pension schemes* Employees opt for up to 15% of the basic pay as contribution to the group pension scheme which also brings down their tax liability
* Companies use GPS to attract top-level managers as they are not entitled for government pension
* As per the LIC’s pension scheme structure, it is not obligatory on the part of the employer to provide pension to all employees.