New Delhi: To popularise a retirement scheme for individuals, interim pension regulator PFRDA is expecting the G N Bajpai-headed committee report on National Pension Scheme (NPS) to be submitted by the end of this month. Agencies
"They are having their last meeting on May 17 and by the end of this month, I'm expecting the report", Pension Fund Regulatory and Development Authority (PFRDA) Chairman Yogesh
PFRDA is planning to inject vigour into the sagging pension sector through promotional campaigns, once the G N Bajpai Committee submits its report.
The current marketing and distribution structure requires restructuring and without that the pension sector will not take off to the desired levels, Agarwal said. "So, we are waiting for the Bajpai Committee report".
The Bajpai committee, headed by former Securities and Exchange Board of India (SEBI) chairman G N Bajpai has been entrusted with the task of analysing the fee structure and
suggesting changes to the National Pension System (NPS).
Initially, the government launched the New Pension System for central government employees for those joining service from January 1, 2004, but it was extended to all citizens from May 1, 2009.
Currently, 7 pension fund managers are managing assets of about Rs 9,000 crore. Of this, about Rs 100 crore is contributed by pension schemes for persons other than government employees.
These fund managers include LIC Pension Fund Ltd, SBI Pension Funds Ltd, UTI Retirement Solutions, IDFC Pension Fund Management, ICICI Prudential Pension Funds Management, Kotak Mahindra Pension Fund and Reliance Capital Pension Fund.
Even though NPS is considered an immensely beneficial financial product for unorganised sector employees, especially those who do not manage a steady source of income after
retirement, it has received lukewarm response till now.
To popularise the scheme, PFRDA in September last year introduced the Swavalamban scheme. Under this scheme, the government contributed Rs 1,000 per year to each NPS account opened in the year 2010-11 and for the next three years, i.e., 2011-12, 2012-13 and 2013-14.
To be eligible, a person has to make a minimum contribution of Rs 1,000 and maximum contribution of Rs 12,000 per annum.
New Delhi: To popularise a retirement scheme for individuals, interim pension regulator PFRDA is expecting the G N Bajpai-headed committee report on National Pension Scheme (NPS) to be submitted by the end of this month.