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The <keyword id="22906567" type="General" weightage="100" keywordseo="Unified-Pension-Scheme" source="keywords">Unified Pension Scheme</keyword> (<keyword id="19904859" type="General" weightage="20" keywordseo="UPS" source="keywords">UPS</keyword>) is a newly introduced <keyword id="20146379" type="General" weightage="20" keywordseo="pension" source="keywords">pension</keyword> system approved by the <keyword id="19909268" type="General" weightage="20" keywordseo="Indian-government" source="keywords" meta.keywordsubtype="org" meta.entityname="Indian government" meta.hostid="261" meta.entityid="Indian government">Indian government</keyword> aimed at providing guaranteed pensions, family pensions, and a minimum assured pension for central <keyword id="19933272" type="General" weightage="20" keywordseo="government-employees" source="keywords">government employees</keyword>. It is set to take effect from April 1, 2025. <h3>Who is eligible for the UPS?</h3>The scheme is applicable to central government employees who have completed a minimum of 10 years of service. It also reportedly offers a choice to current employees between the existing National Pension System (<keyword id="19919089" type="General" weightage="20" keywordseo="NPS" source="keywords">NPS</keyword>) and the new UPS. This includes employees who are retired or retiring on or before 31 March 2025 with arrears. Once selected, the choice will reportedly be final for both current and future employees. <h3>What are the key benefits of the UPS?</h3><ul><li>Guaranteed Pension: Employees will receive a pension equivalent to 50% of their average basic salary from the last 12 months prior to <keyword id="19908343" type="General" weightage="20" keywordseo="retirement" source="keywords">retirement</keyword>, provided they have completed at least 25 years of service. This is proportionately reduced for those with less than 25 years but more than 10 years of service.</li><li>Family Pension: In the event of the pensioner's death, the family is entitled to receive 60% of the pension amount that was being disbursed at the time of the pensioner's passing.</li><li>Minimum Pension: A guaranteed minimum monthly pension of Rs 10,000 is assured after retirement for those with at least 10 years of service.</li></ul><h3>How will the pension be adjusted for inflation?</h3>The UPS includes a provision for <keyword id="22911270" type="General" weightage="20" keywordseo="inflation-adjustment" source="keywords">inflation adjustment</keyword> through Dearness Relief (DR), which is linked to the All India Consumer Price Index for Industrial Workers (AICPI-IW). This ensures that the pension, family pension, and minimum pension keep pace with inflation. <div type="Article" hostid="261" msid="112777109" title="GST Council meet: TMC&amp;#39;s O&amp;#39;Brien urges Sitharaman to withdraw 18 pc GST on insurance premiums" mstype="2" mssubtype="0"></div>The government's contribution to the pension fund has been increased from 14% to 18.5% of the employee's salary. This is part of the government's commitment to ensuring the <keyword id="20615853" type="General" weightage="20" keywordseo="financial-security" source="keywords">financial security</keyword> of its employees in retirement. In addition to the regular pension, employees will receive a lump-sum payment at the time of superannuation. This will be 1/10th of the monthly salary (including basic pay and Dearness Allowance) for every six months of completed service. <h3>How does the UPS compare with the NPS?</h3>The UPS offers a guaranteed pension and family pension, whereas the NPS is a contributory scheme where the final pension amount depends on the accumulated corpus and market performance. Employees under the UPS have the security of a fixed pension, while the NPS offers potentially higher returns but with associated risks. The central government has made the framework of the UPS available to state governments. If adopted, it could benefit around 90 lakh state government employees currently under the NPS. <h3>What is the broader impact of the UPS?</h3>As per current estimates, the implementation of the UPS is expected to cost the government an additional Rs 6,250 crore in its first year. The costs will be reassessed every three years to ensure sustainability. The introduction of the new pension scheme is potentially a significant step toward ensuring the financial security and dignity of government employees in their retirement years. It remains to be seen whether it will effectively address the growing demands for a more secure pension system and improve <keyword id="21935721" type="General" weightage="20" keywordseo="employee-welfare" source="keywords">employee welfare</keyword>.

Confused by the newly introduced Unified Pension Scheme? Here’s all you need to know about how it will work

<ul class="summary-list"><li>Trump wants to cut taxes on Social Security benefits, impacting current and future beneficiaries.</li><li>Experts warn these cuts could deplete the Social Security fund three years earlier than expected.</li></ul>Donald Trump plans to make changes to America's Social Security system with his return to the White Housein January. The president-elect promised on the campaign trail to <a target="_blank" class="" href="https://www.businessinsider.com/trumps-tax-plan-social-security-retirement-medicare-2024-8">cut taxes on Social Security benefits</a> in his second term. "People on Social Security are being killed, and one of the things I'm doing is no tax for seniors on Social Security, and I'll get it done quickly," Trump told "Fox &amp; Friends" in August. For some baby boomers, lower <a target="_blank" class="" href="https://www.businessinsider.com/retirement-savings-social-security-baby-boomers-without-savings-401k-poverty-2024-8">Social Security</a> taxes could mean larger monthly checks in the short-term. But experts predict that the <keyword id="23944791" type="General" weightage="20" keywordseo="Social-Security-tax-cuts" source="keywords">Social Security tax cuts</keyword>, along with other campaign promises made by Trump, could quickly drain the national Social Security fund. That would put benefits at risk for low-income retirees and younger generations, who may <a target="_blank" class="" href="https://www.businessinsider.com/retirement-savings-social-security-baby-boomers-without-savings-401k-poverty-2024-8">rely on that income</a> as they age. "It's designed to help retirees, but the people it's going to hurt are people that rely on Social Security the most," Taylor Lee, a certified financial planner at Belmont Capital Advisors, told BI of Trump's Social Security tax cut. More than 72 million Americans receive Social Security and the estimated average monthly check is <a target="_blank" href="https://faq.ssa.gov/en-us/Topic/article/KA-01903">$1,92</a>4.35 a month, per the Social Security Administration. Americans can begin taking Social Security at age 62, or wait until their full benefits kick in at 67, the national retirement age. Trump's campaign promise comes as Business Insider has <a target="_blank" class="" href="https://www.businessinsider.com/older-americans-regret-retirement-savings-taking-social-security-early-investments-2024-10">heard from older adults</a> with limited retirement savings, many of whom are struggling to afford necessities like housing and groceries on their fixed Social Security income. Income taxes on Social Security apply to all beneficiaries with an annual household income above $25,000, and most pay taxes on at least <a target="_blank" href="https://www-origin.ssa.gov/benefits/retirement/planner/taxes.html">50%</a> of their benefits. Lower-income beneficiaries pay less in taxes. <h2>Social Security tax cuts would hurt low-income retirees, younger generations</h2>US Social Security will be depleted<a target="_blank" href="https://www.businessinsider.com/when-will-social-security-benefits-run-out-retirement-crisis-boomers-2024-5">in the next decade</a> without Congressional action. The fund is largely financed through payroll taxes that Americans contribute to throughout their career. <a target="_blank" href="https://www.crfb.org/blogs/what-would-trump-campaign-plans-mean-social-security">A report</a> published in October by the nonpartisan Committee for a Responsible Federal Budget said that Trump's campaign promises — which alsoincludes ending taxes on tips, reducing <a target="_blank" class="" href="https://www.businessinsider.com/trump-tax-plan-tarriffs-benefits-top-earners-study-2024-10">some income taxes</a>, expanding deportations, and imposing tariffs — would take a toll on the Social Security fund, making it "insolvent" within the next six years. That's three years earlier than the Congressional Budget Office's current estimation. Those policies would also lead to a 33% <a target="_blank" class="" href="https://www.crfb.org/blogs/what-would-trump-campaign-plans-mean-social-security">benefit cut</a> in 2035, a 10% increase from what the Congressional Budget Office projects under the current law. Lee said that low-income boomers and younger generations are likely to feel the brunt of these cuts. Low-income boomers living on Social Security already pay less income taxes, so they wouldn't see the benefits Trump promised. Lee said that many don't have other <a target="_blank" class="" href="https://www.businessinsider.com/social-security-no-savings-snap-benefits-debt-boomers-experiences-2024-6">retirement savings </a>to fall back on if their benefits are slashed. He added that older Americans who are wealthy or middle class would feel less stress from Social Security cuts, and may benefit in the short term from Trump's tax plan. "It would help people in the middle class, people that have the luxury of having a 401(k) or an IRA and have multiple sources of retirement income," Lee said. "But the people that's going to hurt the most are people that don't have that traditional retirement income." Lee said it's possible that <a target="_blank" class="" href="https://www.businessinsider.com/gen-z-social-security-insolvency-medicare-donald-trump-biden-mcconnell-2023-3">younger generations</a> will have lower Social Security benefits, requiring them to rely more heavily on retirement savings. To be sure, any changes Trump hopes to make the tax or Social Security systems would need to be approved by Congress. Working in his favor is that the<a target="_blank" class="" href="https://www.businessinsider.com/republicans-win-senate-election-majority-election-2024-11">Senate will have a Republican majority</a>.(Votes for House representatives are still being counted.) Lee added that tax funding is also not the only challenge facing Social Security: people are living longer, meaning that more benefits funding is required per person. As for other retirement finances, like <a target="_blank" href="https://www.businessinsider.com/personal-finance/investing/what-is-401k">401(k) accounts</a> and <a target="_blank" href="https://www.businessinsider.com/donald-trump-election-victory-impact-investments-costs-housing-taxes-childcare-2024-11">investments</a>, it's unclear what impact a second Trump term will have. The president-elect plans to impose tariffs on foreign goods and make broad tax cuts, a move that is likely to drive inflation and make the cost of living <a target="_blank" class="" href="https://www.businessinsider.com/trump-tariffs-higher-inflation-fed-interest-rates-taxes-mortgage-rates-2024-11">more expensive</a>. With the <keyword id="23944794" type="General" weightage="20" keywordseo="future-of-Social-Security" source="keywords">future of Social Security</keyword> uncertain, Lee said it's important for retirees to build a strong financial plan. "There's a lot of planning that we can still do," Lee said. "Government policy — we really can't affect that. So we just have to control what we can control." Are you relying on Social Security in retirement? Are you adjusting your retirement plans based on Trump's return to office? If so, reach out to this reporter at <a target="_blank" class="" href="mailto:allisonkelly@businessinsider.com">allisonkelly@businessinsider.com</a>.

Trump's plan for Social Security will help baby boomers in the short term and cut benefits for anyone younger

<ul><li><keyword id="122724" type="General" weightage="20" keywordseo="government-securities" source="Orion">Government securities</keyword> are considered among the safest investment options due to the sovereign guarantee attached to them. </li><li>Most brokers allow trading of existing <keyword id="6371629" type="General" weightage="20" keywordseo="g-secs" source="Orion">G-secs</keyword> on the secondary market through their platforms.</li><li>Investing in G-sec-focused mutual funds allows a diversified portfolio within Government securities and low-ticket investments. </li></ul>Government securities, commonly known as G-secs, are <keyword id="166233" type="General" weightage="20" keywordseo="debt-instruments" source="Orion">debt instruments</keyword> issued by the Government of India to raise capital. These securities serve as a way for the government to borrow money from the public or institutions. G-secs come with fixed <keyword id="6371181" type="General" weightage="20" keywordseo="interest-rates" source="Orion">interest rates</keyword> and predetermined maturity dates. They are considered among the safest investment options due to the sovereign guarantee attached to them, ensuring repayment of the principal amount and interest upon maturity. The credit risk on G-secs is thus minimal. Government bonds also boast high liquidity and can be traded easily in the secondary market. This flexibility provides an opportunity to earn improved returns on the bonds and allows for exiting at any desired time before the maturity date as well. How G-secs work Investing in g-secs involves purchasing these bonds at face value, and the interest, also known as the coupon, is paid periodically, typically semi-annually or annually, until the maturity date. The interest rates on g-secs are influenced by various factors, including market demand, inflation, and the monetary policy of the Reserve Bank of India (<keyword id="30067" type="General" weightage="20" keywordseo="RBI" source="Orion">RBI</keyword>). Consequently, the prices of G-secs fluctuate inversely with the prevailing interest rates in the market. When interest rates rise, the value of existing G-secs falls, and vice versa. These securities are traded in the primary and secondary markets. In the primary market, they are directly issued by the government through auctions, while in the secondary market, they are bought and sold among investors. How to invest G-secs are available in various tenures, ranging from short-term (Treasury bills) to long-term (Government bonds). The Retail Direct Scheme by the Reserve Bank of India (RBI) rolled out in 2021 enables individual investors to directly invest in government securities without requiring intermediaries such as brokers or mutual funds. The NSE goBID platform allows retail investors to participate in auctions for new G-sec issuances through your broker. It offers a non-competitive bidding process, meaning you specify your desired amount, and if your bid is accepted, you'll get allotted securities at the cut-off price. Most brokers allow trading of existing G-secs on the secondary market through their platforms. This offers flexibility to choose specific securities and exit positions when needed. Steps to invest `Here are the steps to invest in G-secs. <ol><li>Log in to your brokerage account </li><li>Navigate to the bids section: Locate and click on the "Bids" tab or section within the platform.</li><li>Select government securities: Once in the Bids section, find and select the option for "Govt. securities."</li><li>Initiate the bid: Look for the option to "Place bid" and click on it.</li><li>Enter bid Amount: Input the specific amount you wish to bid for the government securities.</li><li>Finalise the bid: After entering the amount, confirm the bid by clicking on the "Place bid" button.</li></ol>Investing in G-secs through the mutual fund route One can also take the mutual funds route to invest in G-secs. “Investing in G-sec focused mutual funds allows a diversified portfolio within Government securities and low ticket investments,” says Marzban Irani, chief investment officer, fixed income, LIC Mutual Fund. This can be suitable for passive investors or those seeking exposure without actively managing individual bonds. “It is always easy for investors to buy subscription or redemption requests in a mutual fund, compared to looking out to buy or sell securities in the fixed income market. Also, one may buy and hold but in between prices can fluctuate. Many people may not understand the drivers of those price fluctuations,” says Pankaj Pathak, fund manager, fixed income, Quantum AMC. Interest rate risks G-secs do carry one particular risk, that of interest rate fluctuations in the broader market. When rates rise, existing G-Secs with lower rates lose value compared to newer securities offering higher rates. Conversely, falling rates increase demand for older G-Secs, potentially raising their value. Longer-term G-Secs are more prone to rate change risks than short-term ones. Investors holding G-Secs until maturity aren't affected by price fluctuations but can lose potential earnings if rates rise after purchase. “A sudden increase in interest rate can impact return. So one is advised to invest into G Secs only for long-term goals,” says Abhishek Kumar, founder and chief<a href="https://business.outlookindia.com/invest/investment"> </a>investment advisor at SahajMoney, a financial planning firm. Is this a good time to invest? Government securities (G-Secs) typically attract conservative investors seeking a steady income from their investments. Moreover, investors often include G-Secs in their portfolio's debt allocation, which comprises diverse assets like equities, fixed-income instruments, and safe havens such as gold. At present, we are at the peak of the interest rate hike cycle. Developed economies like the US are expecting rate cuts going ahead in 2024. On the domestic front, the core inflation seems to be under control. “The interest rates are holding steady and might even start going down from the second half of next year,” says Kumar. So, going forward, retail investors can expect to improve their returns on G Sec investments. Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

A case for investing in Government securities

<ul class="summary-list"><li>The Department of Government Efficiency wouldn't be a department, but an outside advisory group.</li><li>Under current law, Congress needs to approve most budget changes, limiting the DOGE's power.</li></ul>President-elect Donald Trump on Wednesday announced a new effort to slash what he sees as federal inefficiency, with Elon Musk as cost-cutter-in-chief.Trump <a target="_blank" href="https://www.businessinsider.com/elon-musk-trump-cabinet-election-x-2024-9">made good on a campaign promise</a> when he tapped Musk to co-lead the proposed "Department of Government Efficiency," or DOGE, alongside former GOP presidential candidate Vivek Ramaswamy.Musk says he wants to cut $2 trillion from the federal budget to make it more efficient and effective. Beyond that, though, little is known about how the DOGE will function and how much power it — <a target="_blank" href="https://www.businessinsider.com/trump-adopts-elon-musk-plan-cut-government-spending-efficiency-reform-2024-9">and Musk</a> — will have.Musk did not respond to Business Insider's request for comment for this article. A representative for Ramaswamy declined to comment.<h2 id="2dc0c03e-9977-4403-9201-3d55e844524d">What do we know about the DOGE?</h2>Despite its name, the DOGE will <a target="_blank" href="https://www.businessinsider.com/elon-musks-doge-gets-a-government-checkmark-on-x-2024-11">not actually be a government department</a>, as departments are permanent and can only be created by Congress. Instead, it will function "outside of the government" and disband by July 4, 2026, Trump said in a statement.<div type="image" title="Trump and Musk at a rally" height="2584" width="4184" msid="115360794" hostid="261" sizebytes="161264"></div>The name DOGE is an homage to Musk's preferred cryptocurrency, Dogecoin, which shot up in value after Trump won the election. Under current law, the DOGE might not be able to accomplish much, since Congress controls federal spending."They have no power. No power at all," Elaine Kamarck, a senior fellow at the nonpartisan Brookings Institute who led efforts to reform the federal government under former President Bill Clinton, told Business Insider. "They do make recommendations, and once they make recommendations, the expectation is that the government will act on them."There's no guarantee that a recommendation will turn into a policy, especially given that many of the DOGE's suggestions will likely require congressional approval, Kamarck said.<h2 id="0f11a880-6c1f-4025-a722-a860ae33d16c">The DOGE's $2 trillion goal is something of a pipe dream.</h2>Federal spending <a target="_blank" href="https://www.businessinsider.com/trump-elon-musk-vivek-ramaswamy-department-government-efficiency-doge-2024-11">reached $6.75 trillion in 2024</a>. Multiple experts told BI that it's unlikely Musk will be able to cut his desired $2 trillion without sacrificing programs that have wide bipartisan support or fall under federal mandatory spending, like Medicare and Social Security. Kamarck called the $2 trillion goal the "most unrealistic" part of the whole DOGE plan.Trump has long been preoccupied with cutting what he sees as Washington's waste and fraud."The Department of Government Efficiency (DOGE) will ultimately be staffed and dedicated to this mission," Brian Hughes, a spokesperson for Trump's transition team, told BI in a statement.Quoting former Rep. Barney Frank, Kamarck said that excess federal spending is "marbled" <a target="_blank" href="https://www.businessinsider.com/elon-musk-vivek-ramaswamy-doge-government-efficiency-what-us-spends-2024-11">throughout the budget</a>, like fat throughout a steak, making the DOGE's desired $2 trillion in cuts tricky."It just doesn't work, unless you decide to start cutting Social Security benefits or Medicare, at which point all hell breaks loose," she told BI. "And you know, the bromance between Trump and Musk will end very quickly."Known for <a target="_blank" href="https://www.businessinsider.com/elon-musk-efficiency-companies-tesla-spacex-x-2024-11">streamlining efficiency at his companies</a>, Musk says he wants to cut bureaucracy, shrink the federal workforce, and trim the number of federal agencies down to no more than 99 (there are currently <a target="_blank" href="https://www.federalregister.gov/agencies">more than 440</a>).Douglas Holtz-Eakin, the former director of the Congressional Budget Office, told BI that he doubted that the loosely defined group would be able to accomplish much given its sprawling $2 trillion target."It is hard for me to get seriously ginned up about it until there's a real structure there that suggests that this makes some sense and has a purpose," he said. "If something is designed to do everything, it will do nothing."<h2 id="6bcaf431-1be5-4839-9b83-d0f24a7146cf">The DOGE will exist "outside of government."</h2>In one scenario, the DOGE could function as an advisory committee, which Trump can create through an executive order. The president-elect said the DOGE will work with the Office of Management and Budget, which prepares the president's budget request for Congress."They have made clear that this is a non-governmental department, which is not a familiar term, and so it's not really clear how the organization will operate because of that," Lisa Gilbert, co-president of the progressive nonprofit advocacy group Public Citizen, told BI. "It might be an advisory committee of non-governmental actors, but even from that posture, it won't have the authority to alter budgets or fire employees or rescind regulations."<div type="image" title="Donald Trump and Elon Musk" height="1910" width="2707" msid="115360796" hostid="261" sizebytes="118134"></div>Kamarck said that there are specific rules laying out how much interaction external committees can have with the government, but it's not clear how Trump, Musk, and Ramaswamy envision the <a target="_blank" href="https://www.businessinsider.com/elon-musk-doge-hiring-staff-how-to-apply-2024-11">internal infrastructure of the DOGE</a>."How are they going to talk to each other? How are they going to meet with each other? Are they going to go talk to anybody in the government, or are they just going to make up things from 50 miles away?" she said.On November 14, the DOGE <a target="_blank" href="https://x.com/DOGE/status/1857076831104434289">said in a post on X</a> that it is seeking "super high-IQ small-government revolutionaries willing to work 80+ per week on unglamorous cost-cutting." Musk said on his <a target="_blank" href="https://x.com/elonmusk/status/1857112441529700671">personal X account</a> that the positions will not be paid.<h2 id="4c25da3e-39de-44e2-a1c5-c7249f9fc728">Trump has talked about changing a key law that limits his federal spending power.</h2>Trump, Musk, and Ramaswamy may try to circumvent the congressional obstacles standing in the way of their cost-cutting agenda. Last year, Trump expressed interest in going after the Impoundment Control Act, a 1974 provision that requires the president spend funds that Congress has appropriated."Bringing back Impoundment will give us a crucial tool with which to obliterate the Deep State, Drain the Swamp, and starve the Warmongers," the president-elect <a target="_blank" href="https://www.donaldjtrump.com/agenda47/agenda47-using-impoundment-to-cut-waste-stop-inflation-and-crush-the-deep-state">said in a video</a> in June 2023.Holtz-Eakin said attempting to skirt the impoundment act would be like rewriting history, and Kamarck told BI that any attempt to not spend money that Congress has appropriated poses big Constitutional questions."If he tries to change the law so that he can impound funds, my guess is there'll be a fight in the Congress and he'll lose," she said.<h2 id="4956dc95-91da-4028-b1b3-d843a1509397">Musk could bump up against many conflicts of interest but likely wouldn't have to divest from his companies.</h2>If the DOGE is a federal advisory committee, Musk and Ramaswamy would likely be "special government employees," who are experts or consultants that can work for a federal agency or the White House for up to 130 days. They do not get paid and, crucially, would not have to divest from their companies."They've been clear also that they're staying in their roles as the heads of companies and in other places," Gilbert said. "Not being a part of government means they don't have to deconflict themselves."In a press release for Public Citizen, Gilbert said that Musk's "own businesses have regularly run afoul of the very rules he will be in position to attack" as the DOGE co-lead.<div type="image" title="Donald Trump and Vivek Ramaswamy" height="5504" width="8256" msid="115360795" hostid="261" sizebytes="4296554"></div>In the role, Musk and Ramaswamy would still be bound to federal ethics laws and have to recuse themselves from conversations that affect them personally, <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-11-14/doge-what-can-musk-do-with-the-department-of-government-efficiency?srnd=homepage-americas">Bloomberg</a> reported. With his companies under investigation from at least 20 federal regulatory agencies and SpaceX having more than $15 billion in federal contracts, Musk could face many such conflicts.Kamarck said that there's no "firm line" about when employees need to take themselves out of discussions, but that lawyers address questions on a case-by-case basis.Musk has expressed public frustration with what he views as overbearing federal oversight, which he said has <a target="_blank" href="https://www.nytimes.com/2024/11/12/us/politics/elon-musk-vivek-ramaswamy-trump.html">slowed down his pace of business</a>.By law, meetings of advisory committees, like the kind the DOGE could be, need to be open, and Musk has no problem with the <a target="_blank" href="https://www.businessinsider.com/elon-musk-doge-leaderboard-federal-government-spending-trump-2024-11">transparency</a> — in fact, he seems to invite it. In a post on X, the billionaire promised to post all of the group's actions online <a target="_blank" href="https://www.businessinsider.com/elon-musk-leaderboard-government-spending-marketing-genius-doge-donald-trump-2024-11">"for maximum transparency</a>" and said the public should chime in with their opinions.It's also possible the group might intentionally avoid becoming a federal committee because of the increased oversight and scrutiny, Holtz-Eakin said."It's not a federal committee as far as I can tell," he said. "I think that's deliberate. If you do that, then you're subject to lots of things like a conflict of interest you have to sign off on, and I think that would be a nightmare for Mr. Musk. And so they're not going to let it tiptoe toward federal jurisdiction."Until Trump actually forms the DOGE, if he ever does, the legal and bureaucratic details remain murky, and the experts BI spoke with aren't convinced that it will work well."It sounds a little screwy, frankly," Kamarck said.

How Elon Musk's Department of Government Efficiency could actually work

<ul class="summary-list"><li>Republicans are projected to maintain their majority in the House of Representatives.</li><li>That means Trump is set to have a trifecta, as he did in the first half of his first term.</li></ul>After more than a week counting outstanding ballots across several states, Republicans are officially projected to maintain control of the House of Representatives.According to projections from NBC and CNN, Republicans will win at least 218 House seats, enough to claim the majority. Several races still remain undecided, with ballots continuing to be counted. The GOP currently holds a 220-seat majority.Democrats picked up GOP-held seats in New York, Oregon, California, Louisiana, and Alabama, while Republicans flipped Democratic-held seats in Pennsylvania, Michigan, and North Carolina.The GOP also <a target="_blank" class="" href="https://www.businessinsider.com/republicans-win-senate-election-majority-election-2024-11">retook control</a> of the Senate, meaning President-elect Donald Trump will enjoy a governing trifecta for at least the next two years, as he did during the first two years of his first term.As a result of the GOP keeping the House, Trump will <a target="_blank" class="" href="https://www.businessinsider.com/congress-balance-of-power-results-competitive-republicans-democrats-2024-11">avoid the resistance</a> he encountered from a Democratic-led House during the last two years of his first term. Furthermore, he'll be dealing with a <a target="_blank" class="" href="https://www.businessinsider.com/trump-republican-party-more-compliant-this-time-2024-11">far more obedient GOP</a> than existed during the first two years — after several successive election cycles, the party has largely been remade in Trump's image.Congress is particularly important for Trump when it comes to<a target="_blank" class="" href="https://www.businessinsider.com/tax-cut-tariff-plan-outlook-presidential-election-scenarios-harris-trump-2024-10"> tax policy</a>. Many of his other policy goals can be accomplished via executive orders, but the incoming president will need congressional action to exempt tips, overtime pay, and Social Security benefits from taxation, as he's promised.About three dozen House races were considered to be competitive, ranging from Republican-held swing districts in traditionally Democratic states like New York and California to <a target="_blank" class="" href="https://www.businessinsider.com/david-schweikert-profile-trump-realignment-arizona-economic-interests-abortion-2024-10">suburban districts</a> across the country where Democrats have made inroads in recent election cycles.It took far longer to determine who controls the House than the Senate or White House in large part due to the slow counting of mail-in ballots in Arizona and California.Both House Speaker <a target="_blank" class="" href="https://www.businessinsider.com/who-is-mike-johnson-republican-speaker-house-louisiana-2023-10">Mike Johnson</a> and House Minority Leader <a target="_blank" class="" href="https://www.businessinsider.com/hakeem-jeffries-early-honeymoon-house-democrats-tension-progressives-2023-5">Hakeem Jeffries</a> are expected to remain in their respective roles, with internal leadership elections set to take place later this month.

Republicans keep the House, handing Trump a trifecta of government control

Mumbai: Indian stock markets rallied on Monday after the <keyword id="20032950" type="General" weightage="20" keywordseo="BJP-led-government" source="keywords">BJP-led government</keyword> secured a majority in the latest state elections in Maharashtra. The <keyword id="20641216" type="General" weightage="100" keywordseo="Nifty-50" source="keywords">Nifty 50</keyword> index gained more than 1.45 per cent or 346.30 points to open at 24,253.55 points, while the BSE <keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword> index surged 1,076 points or 1.36 percent to open at 80,193.47 points. Experts noted that the election results have an impact on the markets today, and if past trends are followed, the markets may witness some rally amid the return of the BJP in the Maharashtra state elections. <keyword id="20161891" type="General" weightage="20" keywordseo="Ajay-Bagga" source="keywords">Ajay Bagga</keyword> Banking and Market Expert stated that "The just concluded elections in Maharashtra, the results of which were declared on November 23rd, will have a positive immediate impact on the stock markets. The landslide win for the BJP lead coalition in the Maharashtra state elections could lead to a short-term boost to the Indian stock markets which have been in a declining mode" He further added "Investors will interpret this mandate as favourable for the capex and infrastructure push that is ongoing in Maharashtra. The beneficiary sectors of this election are industrials, infrastructure, manufacturing, real estate and financials". In the sectoral indices on the National Stock Exchange, <keyword id="20065014" type="General" weightage="20" keywordseo="Nifty-Realty" source="keywords">Nifty Realty</keyword> and <keyword id="19941314" type="General" weightage="20" keywordseo="Nifty-PSU-Bank" source="keywords">Nifty PSU Bank</keyword> rallied with a surge of more than 2 percent, while other major indices also gained more than 1.5 per cent, including Nifty Metal, Nifty Media, and Nifty Oil &amp; Gas. In the Nifty 50 list, 49 stocks gained during the opening session, while only one stock declined. Shri Finance opened as the top gainer in the Nifty 50. The shares of the AdGroup also surged around 2 percent at the time of filing this report. <keyword id="19967296" type="General" weightage="20" keywordseo="Adani-Green" source="keywords">Adani Green</keyword> also climbed around 4 percent. "We are most likely to break the falling 20-day average that lies at 24,030, which will be the first time that'd happen since the record high of 27th September. Seasonality trends between now and the end of the year have been historically positive, with the Nifty rising 80% of the time during this period with an average return of over 4 per cent" Akshay Chinchalkar, Head of Research, Axis Securities. In other Asian markets, Japan and South Korea indices rallied. The Nikkei 225 index surged more than 1.5 percent, South Korea's Kospi also rose by 1.5 percent, Taiwan's Weighted Index was up by 0.48 percent, while Hong Kong's Hang Seng index was down marginally by 0.14 percent at the time of filing this report.

Nifty, Sensex rallied around 1.5 % after Maharashtra election results, Experts noted short term rally

India remains highly dependent on imports for minerals critical to accelerating its <keyword id="19951336" type="General" weightage="20" keywordseo="energy-transition" source="keywords">energy transition</keyword>, with a full reliance on shipping in lithium, cobalt and nickel, according to a report released Monday. The report, published by the Institute for Energy Economics and Financial Analysis (IEEFA), said that India's demand for <keyword id="19978839" type="General" weightage="20" keywordseo="critical-minerals" source="keywords">critical minerals</keyword> is expected to more than double by 2030, while domestic mining operations may take over a decade to start producing. It stresses that India needs a carefully crafted import strategy to mitigate potential trade risks while balancing international relationships to secure these essential minerals. IEEFA's report examines five critical minerals (and their compounds) - cobalt, copper, graphite, lithium and nickel - from the perspectives of import dependency, trade dynamics, domestic availability, and global price fluctuations. The findings show that India remains largely import-dependent for these minerals and their compounds, with 100 per cent import reliance for minerals like lithium, cobalt, and nickel. "India should strive to de-risk its critical minerals sourcing by identifying new international resources and expediting <keyword id="20681115" type="General" weightage="20" keywordseo="domestic-production" source="keywords">domestic production</keyword>. A concerted effort to partner with and foster bilateral relations with <keyword id="23713985" type="General" weightage="20" keywordseo="mineral-rich-nations" source="keywords">mineral-rich nations</keyword> should be a priority for India," said the report's co-author Charith Konda, Energy Specialist, IEEFA. "The country can also explore investment opportunities in resource-rich, friendly nations, such as Australia and Chile, as well as African countries like Ghana and South Africa," he added. The report said India depends heavily on China for synthetic graphite and natural graphite and it should explore cooperation initiatives with countries like Mozambique, Madagascar, Brazil and Tanzania which are some of the highest graphite producing countries. "As part of the Global South cooperation initiatives, these countries could be favourable partners for India for <keyword id="23713984" type="General" weightage="20" keywordseo="graphite-trading" source="keywords">graphite trading</keyword>," said the report's co-author Kaira Rakheja, Energy Analyst, IEEFA. India is also highly import-dependent for copper cathodes and nickel sulphates from just two countries - Japan and Belgium. The report suggests India could look at the US, the fifth largest producer of copper in the world, to diversify its suppliers and enhance <keyword id="23714709" type="General" weightage="20" keywordseo="supply-security" source="keywords">supply security</keyword>. For minerals like lithium oxide and nickel oxide, the dependency is low on one country, but overall imports largely come from Russia and China, both countries with potential trade risks. "Developing domestic lithium refining capacity will help India integrate with the global lithium supply chain," said Rakheja. The report also notes the significant efforts that the Indian government is making to improve domestic production of critical minerals with the auctions by the Ministry of Mines and the planned Critical Minerals Mission. "The critical minerals mining block auctions can serve as an opportunity for India to focus on building refining and processing capabilities to emerge as a global value-adding hub," said Rakheja. "Government support in the form of viability gap funding and technology development will help promote such auctions and ultimately the domestic production of critical minerals. "A stable supply of critical minerals is imperative for India to achieve its <keyword id="19895602" type="General" weightage="20" keywordseo="renewable-energy" source="keywords">renewable energy</keyword> goals," Konda said. India has committed to achieving 500 gigawatts (GW) of non-fossil fuel-based electricity installed capacity by 2030. Currently, the country's renewable energy installed capacity stands at 201 GW, with solar energy accounting for 91 GW. According to another study, the fast-developing South Asian nation needs to install around 7,000 GW of renewable energy capacity to achieve net-zero emissions by 2070.

Energy transition: India remains highly dependent on imports of critical minerals, says report

In a major step toward protecting students and their families, the Indian government has issued new guidelines aimed at curbing misleading advertisements by coaching centres. The Centre's crackdown addresses exaggerated claims like “100% selection” or “guaranteed job security” — promises that often lead to disappointment among students who invest time and money expecting a near-certain outcome. <h2>Protecting consumers, not shutting down coaching</h2>On Wednesday, the Central Consumer Protection Authority (CCPA) rolled out these guidelines in response to numerous complaints from the National Consumer Helpline. According to <keyword id="20003684" type="General" weightage="20" keywordseo="consumer-affairs" source="keywords">Consumer Affairs</keyword> Secretary Nidhi Khare, the government’s goal is not to shut down coaching centres but to ensure their ads don’t “undermine consumer rights.” “We have seen coaching centres deliberately concealing information from prospective students,” Khare said. “Therefore, we have come out with the guidelines to provide guidance to people involved in the coaching industry.” So far, the CCPA has issued 54 notices to violators and imposed penalties of around Rs 54.60 lakh. <h2>What’s prohibited?</h2>The guidelines lay out strict boundaries on what coaching centres can — and cannot — say in their ads. Here’s what the guidelines address: <ul><li>False Claims: Ads should not make unsubstantiated promises about “100% selection” or “100% job security.”</li><li>Course Details: No exaggerating or omitting information about courses, their duration, or outcomes.</li><li>Faculty Credentials: Qualifications of teachers must be presented accurately, with no fake credentials.</li><li>Fees and Refunds: All fees and refund policies must be transparent.</li><li>Selection Rates and Ranks: Coaching centres cannot claim high selection rates or exam rankings without proof.</li></ul>Additionally, they are not allowed to use successful candidates’ names, photos, or testimonials in ads without written consent from these individuals. Khare advised students to double-check the information provided by coaching centres. “Many UPSC students clear prelims and mains on their own and take only interview guidance from coaching centres,” she explained, encouraging students to verify the course details actually taken by successful candidates. The guidelines go beyond the broad term “coaching.” They define coaching as academic support, education, guidance, study programs, and tuition — but they exclude counselling, sports, and creative activities. The purpose of this definition is to keep the focus on academic and career-oriented programs, which are most prone to misleading ads. <h2>Full disclosure and consequences for violators</h2>Transparency is now mandatory, as coaching centres must display disclaimers and reveal essential course details. Facilities, infrastructure, and resources must be represented accurately, along with any required approvals or recognitions from authorities like AICTE or UGC. Khare, who also serves as the CCPA chief, stressed that coaching centres should accurately present the service, resources, and infrastructure provided. For instance, if they advertise “fully-equipped classrooms,” the guidelines require this to be an honest description. These guidelines come as a supplement to existing laws and are enforceable under the Consumer Protection Act. This means violators will face penalties, potentially similar to the Rs 54.60 lakh already imposed by the CCPA. The government hopes these new standards will push coaching centres to keep their ads honest, helping students and families make better-informed decisions. (With inputs from agencies)

No More False Promises: Government sets rules to prevent misleading and exaggerated coaching centre ads

<ul class="summary-list"><li><keyword id="19992557" type="General" weightage="100" keywordseo="medicare" source="keywords">Medicare</keyword> enrollment is open and insurers are making changes, increasing costs for some.</li><li>Medicare is a key health insurance source for older Americans, often linked to <keyword id="19966945" type="General" weightage="20" keywordseo="social-security" source="keywords">Social Security</keyword>.</li></ul>Older Americans relying on Medicare for their health insurance might be in for a costly surprise next year. Many insurers are making significant changes in 2025.Deductibles and prescription drug costs will become more expensive for some Medicare recipients — and it could impact whether older Americans can afford healthcare. Insurance company mergers and closures are contributing to shifting Medicare plans and prices. Companies like Aetna or AARP/UnitedHealthcare are <a target="_blank" class="" href="https://www.nerdwallet.com/article/insurance/medicare/big-part-d-changes">merging their coverage plans</a>, while previous insurers like Mutual of Omaha are leaving the market. That's leading to fewer — and sometimes pricier — options for Medicare recipients. "When plans end or a merger happens, Medicare enrollees can be impacted in two noticeable ways," Elizabeth <keyword id="23786390" type="General" weightage="20" keywordseo="ayoola" source="keywords">Ayoola</keyword>, personal finance writer at NerdWallet, said in a statement to Business Insider. "In the case of the former, enrollees may be left vulnerable without coverage and scrambling to find a new plan. In the event that a merger happens, enrollees could end up auto-enrolled into a plan that's no longer a good fit." Millions of older Americans depend on Medicare to pay for services like prescriptions and doctor visits. The federal insurance plan — which is often tied to Social Security andtypicallyapplies to people over 65 — is many baby boomers' main source of health coverage. Like other health insurance programs, recipientshave a yearly enrollment period.EligibleAmericans can now join, drop, or switch their supplementalMedicare plans through December 7. Ayoola told BI that if beneficiaries don't take action to adjust their health insurance plansbefore December 7, they could soon see higher out-of-pocket costs, reduced care options, or more limited drug coverage — issues that can't be resolved after the enrollment period closes. However, some beneficiaries will see price increases or loss of coverage regardless. "For people who are budgeting, open enrollment is especially important," Ayoola said. "Because it's a time to do comparison shopping and essentially see if you can find a cheaper plan somewhere else." <h2>Medicare changes on the horizon</h2>An estimate shared with BI from Healthpilot, a technology platform that helps customers choose Medicare plans, suggests that millions of older Americans could lose part of their Medicare benefits in 2025. Healthpilot estimates that there will be 1.5 million people impacted by <keyword id="23786388" type="General" weightage="20" keywordseo="medicare-advantageplan" source="keywords">Medicare Advantageplan</keyword> cancellations and 3.5 million impacted by prescription drug coverage cancellations, due in part to insurance consolidation. Former beneficiaries of those plans will need to find new coverage to replace them next year. The Medicare program has a few different branches: Parts A and B act as stand-alone health insurance programs and cover all types of inpatient and outpatient care, while Part D programs typically cover prescription drugs and basic provider visits as a supplement to people's private insurance plans. Part C, also known as <keyword id="20413657" type="General" weightage="20" keywordseo="medicare-advantage" source="keywords">Medicare Advantage</keyword>, allows seniors to join plans that are offered by private companies but are governed by Medicare rules. Advantage plans have their own caps on how much patients can spend out of pocket, and those numbers change annually. While beneficiaries with Part A and B Medicare could see premium adjustments, most major changes will occur for people with supplemental Part D and Medicare Advantage plans. An increasing number of Medicare Advantage and prescription drug plans are setting their deductible, or the amount of out-of-pocket costs patients are on the hook for before the plan kicks in, at the maximum allowed amount. Healthpilot found that 10% of Medicare Advantage plans will be at the maximum deductible — up from 5% last year. Most Medicare Advantage beneficiaries will still have prescription drug coverage in the new year, but they may face higher out-of-pocket costs. In total, the number of Medicare Advantage plans with drug benefits is largely holding steady, dropping2%. But within the group of Medicare Advantage plans that still have drug benefits, the number of $0 deductible plans will be cut in half — meaning more plans with prescription drug coverage will have higher out-of-pocket costs upfront. To be sure, not all older adultswill be negatively affected by the changes. Some might also have employer-sponsored or private healthcare coverage outside of Medicare, or have plans that aren't changing. But for the Americans who are impacted, the changes could mean healthcare becomes even more of a financial strain. <h2>Baby boomers are already struggling with healthcare costs</h2>These changing Medicare costs come as many low-income baby boomers are struggling to keep up with medical bills. Two older Americans shared with Business Insider their fears for what could happen if their out-of-pocket costs rise in the new year. <keyword id="23786389" type="General" weightage="20" keywordseo="lisa-callejas" source="keywords">Lisa Callejas</keyword> isworried about what would happen if her husband got sick next year. If that happens, they might not be able to afford treatment — her husband's Medicare out-of-pocket costs will go up to $14,000 from around $9,500. "It means we better not get sick," she said. Callejas, 55, and her husband movedto his native Mexico over the summerto save money. Their son died in January, and Callejas' husband, who worked with their son in the family business of home remodeling, can no longer do the manual labor necessary to keep operations running. Additionally, the rising <a target="_blank" href="https://www.businessinsider.com/retirement-savings-social-security-baby-boomers-without-savings-401k-poverty-2024-8">cost of living</a> made it increasingly difficult to stay in the US on a lower income. They're living off the money they made from selling their house in the US and her husband's small <a target="_blank" href="https://www.businessinsider.com/boomers-living-social-security-government-aid-snap-loneliness-crisis-isolation-2024-8">Social Security</a> benefits, but fearful of 2025. Betty, similarly, goes to her dialysis appointments three times a week. She was diagnosed with kidney disease and other conditions a few years ago, forcingher to retire early from her steady job in health communications. Betty — who chose to use her first name for privacy but whose identity was verified by Business Insider —lives on her $1,848 monthly <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-is-social-security">Social Security disability payments </a>in southwest Illinois. The 61-year-old said she qualifies for both Medicare and <keyword id="20234511" type="General" weightage="20" keywordseo="medicaid" source="keywords">Medicaid</keyword>, but still pays a couple hundred dollars each month in healthcare expenses, in addition to her monthly $174 premium. Betty isn't sure yet if her Medicare premiums or deductibles will rise in the new year. If they do, she says she can't afford it. She already struggles to afford housing, groceries, utilities, and the car she needs to travel to her dialysis appointments. "Something as small as $20, I can't even imagine," she said. "I had about $10 left over for this month — but that was because I had to sell some jewelry that my mom picked out. I had to sell it in order to make the bills this month." <a target="_blank" class="" href="https://www.businessinsider.com/boomer-lives-on-social-security-struggles-financially-feels-lonely-retirement-2024-9">Low-income baby boomers</a> like Betty and the Callejas family might feel the greatest hurt from increased Medicare prices, Ayoola said, and these healthcare costs can derail retirement and long-term finances. Regardless of financial health, Ayoola suggested older adults talk to a Medicare expert or wealth advisor before choosing a 2025 plan. "We can't predict the future and we don't know which direction our health is going to go in," Ayoola said. "It's a good idea, no matter where your health is today, to always try your best to budget for health care expenses and look for ways to cut costs." Are you struggling to live on a fixed income in retirement? Are you open to sharing how it has impacted your healthcare access? If so, reach out to <a target="_blank" class="" href="mailto:allisonkelly@businessinsider.com">allisonkelly@businessinsider.com</a> and <a target="_blank" class="" href="mailto: jkaplan@businessinsider.com">jkaplan@businessinsider.com</a>. Correction: October 22, 2024 — An earlier version of this article misstated the number of plans affected by prescription drug coverage cancellations. The correct number is 3.5 million.

Medicare coverage will change in 2025. Some boomers are already struggling to keep up with their medical bills.

<ul class="summary-list"><li>Some American workers are encountering an unpleasant surprise when they reach <keyword id="25452" type="General" weightage="20" keywordseo="retirement" source="Orion">retirement</keyword>.</li><li>Murky provisions slash <keyword id="19966945" type="General" weightage="100" keywordseo="social-security" source="keywords">Social Security</keyword> for people who work in both the government and private sector throughout their careers.</li></ul>Patrice Earnest, 66, expected to have much more money for retirement. But after her husband died, she checked her <a target="_blank" class="" href="https://www.businessinsider.com/retirement-savings-social-security-baby-boomers-without-savings-401k-poverty-2024-8">Social Security survivor benefits</a>. The total: $0. "It's absolutely stunning," Earnest said. "My husband worked all his life since he was 16 bagging groceries, and that Social Security was something we had planned to have in our retirement." Earnest won't see a penny of the benefits her husband worked for — and it's due to her work history, not his. She's one of a few million Americans who see cuts to either their own Social Security benefits or to their <keyword id="44080" type="General" weightage="20" keywordseo="survivor" source="Orion">survivor</keyword> benefits when a spouse dies because they have a career history that includes both government and private sector jobs. The idea is to ensure public servants with pensions don't get overly generous retirement benefits, keeping people like Earnest from receiving full benefits from both a government pension and Social Security. But like many people affected by this, Earnest was caught by surprise — throwing her retirement budget for a loop. The two provisions at play here are the Windfall Elimination Provision and the Government Pension Offset, or <keyword id="19921812" type="General" weightage="20" keywordseo="wep" source="keywords">WEP</keyword> and GPO for short. They typically affect middle-class workers in select states who spent some time in a public-sector job, such as teachers, firefighters, and police officers, with government pensions and no Social Security taxes. The measures reduce Social Security benefits accrued during private-sector work to compensate for the state or local government pension benefits. Even a short time with a pension can trigger cuts to Social Security that workers might have earned in a private sector role. WEP reduces a worker's own Social Security benefits, while GPO applies to spousal or widower benefits like those Earnest expected to collect. "Certainly, I could use the extra money owed to me to pay the bills that I thought we could with a two-income household," she said. Right now, the provisions are part of a political firestorm over how the US should care for its older workers, with Social Security <a target="_blank" class="" href="https://www.businessinsider.com/when-will-social-security-benefits-run-out-retirement-crisis-boomers-2024-5">already imperiled</a> and many retirees struggling to pay their bills. On September 19, a bipartisan bill to eliminate WEP and GPO received the number of signatures needed for a vote in the <keyword id="19910021" type="General" weightage="20" keywordseo="house" source="keywords">House</keyword>. While supporters of WEP and GPO say they're necessary for ensuring equity, critics say they're applied unevenly across states and professions, sometimes resulting in benefit calculation mistakes. Those advocating for eliminating the provisions say they also hurt middle-class government workers the most. <h2>Unpredictable cuts to Social Security benefits make it impossible to plan for retirement</h2>The provisions can end up slashing your Social Security payments by up to half if you have a government pension, whether you were planning on survivor and spousal payouts or your own checks from time spent in the private sector. Workers with a private-sector 401(k), on the other hand, are not barred from collecting full Social Security. <keyword id="23551078" type="General" weightage="20" keywordseo="jane-roth" source="keywords">Jane Roth</keyword>, 74, a widow in New Haven, said she may have reconsidered becoming an educator if she had known about the provisions. <keyword id="20163067" type="General" weightage="20" keywordseo="roth" source="keywords">Roth</keyword> worked in the private sector before becoming a teacher. Because she pulled money out of her teacher retirement fund after six years of teaching to help finance life with a child, she said she has to work six extra years before cashing out her full pension. She's still teaching and has another 14 years before she can receive her full pension. In the meantime, she can't afford to live off the $32,000 she gets annually through her late husband's Social Security survivor benefits. If she retired now and started receiving her partial pension, she'd get even less because the GPO would kick in and zero out her survivor benefits. "What are my choices? Do I retire with a partial pension and lose 100% of my Social Security survivor benefits, or do I work until I am 88?" Roth said. "We are not asking for a handout. This is our money. They took our money and said this will be waiting for you upon retirement, and it's not." WEP and GPO were instituted in the 1980s to make retirement income more equitable, as many believed <a target="_blank" class="" href="https://www.businessinsider.com/how-retirement-of-peak-boomers-could-affect-economy-social-security-2024-4">workers with governmentpensions</a> had an advantage over Social Security recipients. But even pensions have become less of a sure economic bet, with <a target="_blank" class="" href="https://www.brookings.edu/articles/teacher-pensions-systems-are-increasingly-underfunded-making-teachers-vulnerable-and-salaries-less-attractive/">returns less funded</a> and many states <a target="_blank" class="" href="https://www.urban.org/sites/default/files/publication/101700/how_have_teacher_pensions_changed_since_the_great_recession_0.pdf">cutting back the benefits</a> they offer to teachers. "Essentially, it's a substitute," <keyword id="23551077" type="General" weightage="20" keywordseo="karen-smith" source="keywords">Karen Smith</keyword>, a senior fellow at the Income and Benefits Policy Center at the Urban Institute, said. "The reason they don't pay Social Security is because they have this alternate pension." Today, however, major criticisms center on the uneven application, <a target="_blank" class="" href="https://oig.ssa.gov/assets/uploads/a-13-20-50970.pdf">rampant errors</a>, and <a target="_blank" class="" href="https://www.aft.org/news/retirees-advocate-fairness-retirement-benefits">poor communication</a> with those impacted. WEP and GPO impact teachers in 15 states, while state, county, and municipal employees are penalized in 26 states. An audit by the Office of the Inspector General for the Social Security Administration <a target="_blank" class="" href="https://oig.ssa.gov/assets/uploads/a-13-20-50970.pdf">found</a> that WEP and GPO were two of the "leading causes of improper payments" in the system. According to <a target="_blank" class="" href="https://scottweisbenner.web.illinois.edu/RESEARCH/PAPERS/JPEF_Brown_Weisbenner.pdf">a 2013 paper,</a> the WEP reduces benefits disproportionately for lower-earning households in some<a target="_blank" href="https://scottweisbenner.web.illinois.edu/RESEARCH/PAPERS/JPEF_Brown_Weisbenner.pdf"> cases</a>. The Bipartisan Policy Center wrote in a July paper that limitations to WEP calculations resulted in "an imprecise approach to adjusting Social Security benefits." Many who support WEP and GPO, whether in their current or modified forms, say the math still has merit, as those affected by the provisions tend to be better off. The Social Security Administration reported the average monthly check as of July 2024 is about $1,783. Meanwhile, <a target="_blank" href="https://crsreports.congress.gov/product/pdf/RS/98-35/60">nearly half</a> of WEP-affected Social Security beneficiaries had pensions above $3,000 a month in 2023. Proponents of the provisions argue that because of how Social Security <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-is-social-security">calculates benefits</a>, a worker who spent a short period of time in the private sector and the rest of their career working toward a public pension <a target="_blank" class="" href="https://www.urban.org/urban-wire/getting-rid-social-security-offsets-teachers-flunks-equity-test">could end up</a> getting a proportionally larger Social Security benefit than a worker making the same amount of money in the private sector for their whole career. Additionally, canceling WEP and GPO could worsen Social Security's financing, moving the depletion date for funds from 2035 to <a target="_blank" class="" href="https://www.businessinsider.com/when-will-social-security-run-out-pay-full-benefits-plan-2023-3">2034 or sooner</a>. According to the Urban Institute, this could disproportionately benefit those with higher incomes who have 401(k)s or other private retirement accounts. But some of those workers on the other end of the provision disagree. "I had a 76-year-old lady call me up. She taught for 40 years and retired, but recently her husband passed away. She lost all his earned benefits, and she's going to wind up either selling her house or lookfor a part-time job," said Janis Hernandez, a retired teacher in Louisiana, who sits on the communications committee for The National Task Force to Repeal the WEP and GPO. <h2>The future of WEP and GPO</h2>The Task Force <a target="_blank" href="https://ssfairness.org/gpo-wep-faq/">notes</a> that 83% of those penalized by the GPO are women, many of whom took time away from their careers to raise children and thus have less in Social Security than their spouses. Many impacted by the GPO also can't fully calculate their reductions until their spouse dies, like Earnest. Critics of the programs also note that there is no similar means testing for private-sector retirement plans. "If somebody is in the private sector and they've got a good 401(k), you don't tell them, 'Oh, we're not going to give you your Social Security,'" Louisiana Sen. Bill Cassidy, a Republican who's focused on Social Security solvency, told BI. WEP and GPO are front and center in Congress this month when the House of Representatives votes on the bipartisan <a target="_blank" href="https://www.congress.gov/bill/118th-congress/house-bill/82">Social Security Fairness Act</a>, which aims to eliminate both provisions. An alternative to eliminating the provisions completely is simplifying the formula for calculating Social Security benefits, which the Bipartisan Policy Center found would be less costly over time. As the Center on Budget and Policy Priorities finds, there's "widespread support" for a more proportional formula to calculate the amount these provisions shave off. But right now, any action on Social Security or altering those provisions may be a long shot, especially with the presidential election looming. Anne <keyword id="20223028" type="General" weightage="20" keywordseo="mcleod" source="keywords">McLeod</keyword>, 68, said the provisions can be punitive. In her 20s, McLeod worked various part-time and lower-paying clerical roles, all of which paid into Social Security. She then taught in New Orleans for 28 years and worked part-time jobs after school hours. She's retired now and gets $67 monthly in Social Security — $500 less than she would've gotten sans WEP. She gets $2,910 monthly in state retirement, and she creates and sells artwork for extra income. While she and her husband are up to date on their bills, they simplified their lives by selling their house and renting because it's cheaper. "It's almost like a punishment in a way because we chose to be educators or firemen or policemen," McLeod said. "They said you get a good enough retirement from the state, so you'll be OK not getting all your Social Security." Correction: October 1, 2024 — An earlier version of this article provided the wrong figure for Jane Roth's Social Security survivor benefits.

The Social Security curveballs making retirement even more confusing

<ul class="summary-list"><li>Americans are increasingly relying on government aid thanks to aging populations and rising costs.</li><li>Money from programs like Social Security accounted for 18% of total personal income in 2022.</li></ul>Americans are increasingly relying on government assistance — and it reflects a shifting economic landscape.A growing share of income in most US counties is coming from social safety net programs like <a target="_blank" href="https://www.businessinsider.com/snap-alice-food-stamps-hunger-government-assitance-free-meals-2024-5">SNAP</a>, <a target="_blank" href="https://www.businessinsider.com/trump-tax-cuts-social-security-boomers-benefit-fund-depletion-2024-11">Social Security</a>, and Medicaid, per a <a target="_blank" href="https://eig.org/great-transfermation/">report</a> published in September by the research firm Economic Innovation Group. Government transfers of funds from these programs accounted for about 18% of total personal income in the US in 2022, a nine percentage-point increase from 1970, and the equivalent of $3.8 trillion. The spike is in both urban and rural counties.The report said that Americans' increasing dependence on government assistance is in part due to an aging population. One in six people in 2022 were over the age of 65 — compared to one in 10 in 1970 — and just over half of the national transfer income flows from Medicare and Social Security.What's more, <a target="_blank" href="https://www.businessinsider.com/healthcare-childcare-expensive-costs-wage-growth-employment-ai-risks-2024-8">healthcare</a> is straining people's finances. The report said Medicare and Medicaid prices are becoming more expensive as costs for care rise.The report's findings come as Business Insider has spoken with many <a target="_blank" href="https://www.businessinsider.com/boomers-living-social-security-government-aid-snap-loneliness-crisis-isolation-2024-8">retirees</a> — who are living solely on Social Security income because they don't have savings or retirement investments — who say they are struggling to afford basic necessities."I don't want to be rich, I just need to be comfortable," a baby boomer living on <a target="_blank" href="https://www.businessinsider.com/social-security-no-savings-snap-benefits-debt-boomers-experiences-2024-6">$1,104 monthly in Social Security</a> previously told BI. "I just want to know that I can have food when I need it and a nice roof over my head."The EIG's analysis of county and county-equivalent data (such as parishes in <a target="_blank" href="https://www.census.gov/geographies/reference-files/2010/geo/state-local-geo-guides-2010/louisiana.html">Louisiana</a> that are considered similar to a county) shows how much government aid transfers as a share of total income varied across the US. Just a handful of places with data had shares above 40% in 2000, as seen in the map below.Most counties from EIG's analysis saw government transfers as a share of total income rise between 2000 and 2022, with many increasing by at least 10 percentage points."Today, most US counties depend on a level of government transfer income that was once reserved only for the most distressed places," the report said.Paychecks and investments are Americans' main sources of income outside government assistance. Still, many don't make enough to get by: 13% of individuals live below the federal poverty line, <a target="_blank" class="" href="https://www.businessinsider.com/middle-class-americans-earning-above-poverty-live-paycheck-to-paycheck-2024-4">per a report</a> from the nonprofit United Way's United for ALICE program. That's <a target="_blank" rel="noopener noreferrer" class="c-link" href="https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines">$15,060 annually</a> for one person.The EIG report suggests that reliance on government transfers will continue to be a norm in many US counties. EIG said enacting policies that boost wages and encourage workforce participation would be possible solutions to help reduce reliance on government assistance.Are you living on a limited income or relying on government assistance? Are you open to sharing how you budget and afford basic necessities? If so, reach out to these reporters at <a target="_blank" href="mailto:allisonkelly@businessinsider.com">allisonkelly@businessinsider.com</a> and <a target="_blank" href="mailto:mhoff@businessinsider.com">mhoff@businessinsider.com</a>.

2 maps show how Americans rely on income like Social Security more than they used to

In a bid to support meritorious and deserving Indian students to pursue their higher education without having to worry about funds, the government today announced the <keyword id="23831216" type="General" weightage="100" keywordseo="PM-Vidyalaxmi-scheme" source="keywords">PM-Vidyalaxmi scheme</keyword>. Here's all you need to know about it: The scheme will cover students who secure admission to one of the top 860 higher educational institutions in the country. In effect, this is set to benefit over 22 lakh students annually. You can apply for this loan via a soon-to-be launched consolidated PM-Vidyalaxmi portal. The loan application will be entirely digital and will not require collateral or assets to be pledged in place of a loan or even a guarantor. For loans up to Rs 7.5 lakh, the government will provide a 75% credit guarantee. If your family's annual income is up to Rs 8 lakh, you are eligible for receiving loans up to Rs 10 lakh at an interest rate of up to 3% lower rates. This support will be offered to around 1 lakh students every year, and those who opt for technical or professional courses from government-run institutions will be given preference for the same. The government has already set aside Rs 3,600 crore for the same, to be utilized between 2024 and 2031, benefiting 7 lakh students in this period. All eligible students whose family's annual income falls below the Rs 4.5 lakh threshold will receive a full subsidy on interest payable. As for which higher education institutions (HEIs) will qualify, it will depend on recent NIRF (National Institutional Ranking Framework) rankings. This will include: <ul><li>All centrally governed institutions</li><li>Public and private institutions that have made it to NIRF's top 100 rankings in the overall, category, and domain-specific categories</li><li>All state government HEIs that are ranked between 101 and 200 in <keyword id="22759868" type="General" weightage="20" keywordseo="NIRF-rankings" source="keywords">NIRF rankings</keyword> will also be eligible.</li></ul> <h2>Rising cost of education</h2> Data from NSSO (National Sample Survey Office) highlights that the average expenditure on education in India has doubled in the last decade. Per the All India Survey on Higher Education 2020-21, the tuition fees for engineering courses in most private institutions have already risen by 50% over the past 10 years. Education inflation currently stands high, at about 11–12%. The demand for educational loans is also inching up steadily. Per RBI data, as of September 20, 2024, the total quantum of outstanding education loans stood at Rs 62,389 crore, up 2.8% from Rs 60,715 crore in September 2023. India's largest lender, the State Bank of India, leads the education loan bandwagon, with disbursals worth Rs 10,860 crore in FY24.

You Searched For "Government Securities" and got 12 results

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2 maps show how Americans rely on income like Social Security more than they used to

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Lack of funds stopping you from pursuing higher education? The government can come to rescue

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