SBI launches pension funds scheme

SBI launches pension funds scheme
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First Published: Wed, Aug 27 2008. 05 48 PM IST
Updated: Wed, Aug 27 2008. 05 48 PM IST
Mumbai: State Bank of India, the country’s largest bank, has floated SBI Pension Funds Pvt Ltd or SBIPFPL to manage investment of the contributions made by the employees of central and state governments who choose to join the scheme, said a bank release on Wednesday.
The release quoted R. Chinnaiyan, managing director of SBIPFPL, saying, “Following the invesetment norms, the fund will invest 85% of the contributions in fixed income securities and 15% in equities and equity-linked mutual funds.” According to the managing director, SBIPFPL has got the maximum share among the fund managers and will manage some 55% of the corpus.
The new pension scheme will cover around five lakh central and state government employees with an initial corpus of around Rs2,000 crore. The scheme is applicable to the government employees who joined the service on or after 1 January, 2004.
The central government has already handed over the corpus to the fund manager. Twenty state governments have opted to join the scheme but they are yet to hand over the corpus to the fund manager, said the bank release.
Life Insurance Corporation of India and UTI Asset Management Company Pvt. Ltd are the other fund managers.
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First Published: Wed, Aug 27 2008. 05 48 PM IST