NPS account holders may get minimum assured return scheme this year
- PFRDA is mulling over a minimum assured return scheme under the NPS scheme
NPS scheme: The National pension system (NPS) account holders may get a minimum assured return scheme by the end of September 2022. The Pension Fund Regulatory and Development Authority (PFRDA) is mulling over a minimum assured return programme under the NPS scheme. The PFRDA may launch this plan under NPS from 30th September 2022.
Informing about the PFRDA plans under the NPS scheme, Supratim Bandyopadhyay, Chairperson at PFRDA told PTI, "The Minimum Assured Return Scheme is under development. Tentatively, we may start from September 30," adding, "Over a 13-year period, we have given a compounded annual growth of more than 10 per cent... 10.27 per cent to be precise. Always, we have given investors inflation-protected returns."
The PFRDA Chairperson went on to add that the regulatory body has always been aware of the inflation and depreciation of rupee and gave the investors an inflation-protected return.
Supratim Bandyopadhyay of PFRDA further said that size of the pension assets in India is ₹35 lakh crore, of which 22 per cent totaling ₹7.72 lakh crore is with the National Pension System (NPS), while the Employees' Provident Fund Organisation or EPFO deals with 40 per cent of the funds. He said the subscriber enrolment has substantially increased over a period of time from 3.41 lakh to 9.76 lakh in 2022.
Supratim Bandyopadhyay said that the PFRDA is expecting the subscriber enrolment to go up to 20 lakh in the current fiscal i.e. FY 2022-23. He said ease of on-boarding through digital means such as usage of Aadhaar, DigiLocker, CKYC for KYC, OTP-based authentications and paperless processes of onboarding/servicing are among the many other initiatives. Further, the maximum joining age has been increased to 70 years and age for exit increased to 75 years.
The NPS account would be "auto continued" at the age of 60 or superannuation age. The annuity purchase can be deferred up to the age of 75 years. The chairman of the regulatory body said the NPS account holders can opt for a premature exit after five years of joining the NPS scheme and the investment choice can be changed four times in single financial year.
(With inputs from PTI)
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First Published:6 Aug 2022, 11:29 AM IST
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