Please use this identifier to cite or link to this item: https://ir.iimcal.ac.in:8443/jspui/handle/123456789/4778
Title: New Pension Scheme- Is it a Right Alternate of Old Pension Scheme?
Authors: Rajvanshi, Vivek
Rao, Menaka
Keywords: New Pension Scheme
Old Pension Scheme
Annuity
Retirement Planning
Issue Date: 2023
Publisher: Indian Institute of Management Calcutta Case Research Center
Abstract: The government of India (GoI) in 2004 started a new pension scheme (NPS). It is a Defined contribution plan where employees and employers contribute some percentage of their salary. The amount is invested in financial instruments, such as bonds (debt) and stocks (equity). This scheme has replaced the old pension scheme, a defined benefit pension plan, where the employees receive a family pension after completing certain years of satisfactory services. The case provides an opportunity to analyze the motive of the GoI to move from a defined benefit to a defined contribution plan. Also, the case provides a simulation analysis to estimate the expected corpus and annuity one would expect at the time of retirement.
Description: Data Source: Secondary sources
Industry: Risk and return estimation, Resolving amenities, Comparing DC & DB plan
Case Reference No:- IIMC-CRC-2023-03
Case Length: 16 pages + Teaching Note
Category:- 2
Thematic Group: Financial Management / Accounting
Biosketch: Prof. Vivek Rajvanshi, Finance and Control Group, IIM Calcutta, Joka-Kolkata
URI: https://ir.iimcal.ac.in:8443/jspui/handle/123456789/4778
https://www.iimcal.ac.in/case-studies-lists#accordion-4
Appears in Collections:2023-24

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