New Delhi: Interim pension regulator PFRDA (Pension Fund Regulatory and Development Authority) is expecting the G. N. Bajpai-headed committee on national pension system (NPS), set up to fast track and popularize a retirement scheme for individuals, to submit its report by the end of this month.
“They are having their last meeting soon and by the end of this month, I’m expecting the report,” PFRDA chairman Yogesh Agarwal told PTI.
The regulator 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 analyzing 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 1 January 2004, but it was extended to all citizens from 1 May 2009.
Currently, 7 pension fund managers are managing assets of about Rs9,000 crore. Of this, about Rs100 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 unorganized sector employees, especially those who do not manage a steady source of income after retirement, it has received lukewarm response till now.
To popularize the scheme, PFRDA in September last year introduced the Swavalamban scheme. Under this scheme, the government contributed Rs1,000 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 Rs1,000 and maximum contribution of Rs12,000 per annum.