Components Of Retirement Savings Account

COMPONENTS OF THE RSA:

  • The 7.5% monthly deduction of basic, rent (housing) and transport allowance from the employee’s salary plus the accrued interest.
  • The 7.5% monthly contribution by the state Government/employer plus accrued interest
  • The additional voluntary contribution if any, by the employee to boost the contributions towards providing comfort in retirement.
  • The accrued pension rights made up of pension rights and gratuity benefits of all eligible employees in service before 1st April 2007.
  • A death benefit of a minimum of 320% of annual total emolument. This is paid into the RSA of employees who die in service and is otherwise called a survivor benefit.
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