New pension scheme: Bihar government increases contributions for university employees to 14 pct

New pension scheme: Bihar Deputy Chief Minister Sushil Kumar Modi Thursday said that Bihar government has increased its contributions for university employees availing the new contributory pension scheme.

The government has increased its contribution from 10 per cent to 14 per cent with effect from July 1, 2019 and the university staff will get benefit on par with state government employees, he said.

The move will benefit 3000 teaching and 1000 non-teaching staff of the state's universities appointed on or after September 1, 2005, Sushil Modi who is also the Bihar finance minister said.

Earlier a total 10 per cent of the sum of basic salary and DA of the university staff used to be deducted as their contribution and the same amount used to be deducted from their employers. Now the deduction has been raised to 14 per cent which will ultimately benefit the university employees, he said.

Under the new pension scheme, the university staff like the state government employees will have the facility of opting for either the pension pattern or investment pattern which they can change once a year, the deputy chief minister said.