Volume : 3, Issue : 1, January - 2014

A Comparative study on pension benefit of Government Employees in India and Chile

Sukhen Kali

Abstract :

In Chile, reform in pension system took place in the early 1981 when the state managed pay-as-you-go system is replaced by a privately-managed fully funded scheme. In this system, benefits are not defined a priory in the fully funded system but instead depend on the result of individual savings and the return on those savings. However, the pension plans for police and armed forces remains unchanged. On the other hand, New Pension System (NPS) was introduced in India for the employees (except the personnel of Armed Forces) of the central government w.e.f 01.01.2004. 26 States and Union Territories are either agreed or already enforce the system. Increasing number of retired personnel and as well as increasing financial burden on the government of paying traditional defined benefit pension force the government to think about the change the system and convert into defined contribution type. In this paper, an attempt has been made to provide a ief idea about the pension benefits provided to the government employees of India and Chile and also compare the pension benefits of these two countries.