The government will set up a committee under the finance secretary to improve the National Pension System, a defined contribution scheme introduced in 2004, to address employee concerns while also adhering to fiscal prudence, the FM said on Friday. The decision comes on the back of demands to revert to the Old Pension Scheme, which provided defined benefits sans employee contribution. The committee may also consider the Andhra Pradesh model of a hybrid scheme (Guaranteed Pension Scheme) involving contributions and defined payouts. The proposal for a hybrid structure was made by the RBI group headed by BK Bhattacharya in 2003. ISHAAN GERA looks at the facts:
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