One step forward, two steps back4 min read . Updated: 01 Jan 2014, 06:40 PM IST
Where we will be with our pension reform in 2024 will depend almost entirely on what we do today
The National Pension System (NPS; later renamed as National Pension Scheme) was born on the first day of 2004. It was expected to provide 300 million low-income informal sector Indians meaningful old-age income security through thrift and self-help. The committee that formed the scheme emphasized the importance of harnessing existing, regulated institutions for funds management, annuitization, administration, distribution and service outreach as a way to both expedite implementation and minimize costs. Through portable individual accounts and a simple menu of product and fund manager choices, NPS would deliver identical rights and an equal opportunity to every Indian citizen to achieve a financially secure and dignified retirement. A dedicated regulator would provide citizens, especially low-income informal sector workers in remote locations, with secure, convenient and affordable access to a well regulated environment to accumulate micro savings for their old age.