CPS Full Form In Income Tax
CPS complete form for the tax system of income includes the The Contributory pension Scheme. It’s also referred to by its acronym,”the National Pension System (NPS). The system was created by the government to offer individuals with a reliable and standard method of saving to fund their retirement. It was introduced in 2004, under the supervision by the Pension Fund Regulatory and Development Authority (PFRDA). It was restricted to new government employees at first but in 2009, all Indian citizen was able to join. CPS holds a portion of a employee’s pay to fund their pension and the employer pays the same. This program uses an unique 16-digit number known as Permanent Retirement Account Number (PRAN) to monitor the pension and allow the participant to carry his pension with them when they shifts jobs or places of work.
Also Read: TCS Full Form in GST
Who Can Join CPS?
Anyone employed by the central government from January 1st 2004 can be a member of CPS however it does not include the armed forces. This means that even if you did not work informally or were self-employed but you still have the option of becoming an account CPS member. In the Tier I account, each person who joins must save a specific portion of their salary specifically for retirement. The savings can’t be withdrawn until they retire.
Fund Management and Investment Choices:
The CPS funds are managed by appoint Pension Fond Managers (PFMs) who are supervised by PFRDA. People who are part of this scheme are able to choose from a range of investment plans dependent on the amount of risk they’re willing to accept. This includes such types of investment like government securities, stocks as well as fixed income options. Their performance is frequently examined, and this is reported to those who have made investments.
