Bangalore: The Indian economy is facing a slowdown which has led to an innovative and a smarter way by the leading companies and banks to drop more money into employees’ accounts. As per TOI reports, certain leading companies of the country has put forward a choice to buy products offered under the New Pension System (NPS) to help them get higher tax breaks while building a bigger retirement grounding.

According to Yogesh Aggarwal, Chairman of the Pension Fund Regulatory and Development Authority of India (PFRDA), the companies include Reliance Industries, Reliance ADA Group, ICICI, Wipro, State Bank of India, Cognizant, ACC, Capgemini, Grasim Industries, Nalco and Konkan Railway Corporation.

NPS as defined to be a benefit scheme is obligatory for government employees who started their service from January 1, 2004 and voluntary for others. In late 2011, a customized version of the scheme was launched for corporate. Initially the response was moderate. Even to this day, most of the companies depend on the Employees’ Provident Fund Organization (EPFO) to park the retirement savings of their employees. The EPFO is compulsory only for those employees who earn up to 6,500 monthly and voluntary for those who earn beyond that. Companies have offered an option to their employees to opt for NPS.

"An easy way for employers is to restructure salary packages of their employees without incurring any extra cost. Companies will save on expenses on self-administration of pension functions such as setting up a trust, record-keeping and fund management and so on," says Aggarwal.