Friday, 8 June 2012

Proposed Amendments in PFRDA bill to make NPS more attractive

The Cabinet is likely to approve three amendments proposed in the Pension Fund Regulatory Development Authority (PFRDA) Bill, the law relate to New Pension Scheme (NPS). Central Government Employees who joined in Government Service on or after 01.01.2004 are under NPS. This pension scheme has also been extended to all Indian Citizens.

The Cabinet will meet to move amendments to the Pension Fund

Regulatory Development Authority (PFRDA) Bill. According to reports, three changes are being made to PFRDA Bill.
  •  The first amendment will reportedly allow contributor to withdraw funds from the pension scheme in case of an emergency. The present law does not provide for withdrawing funds for emergency purposes from NPS.
  •  Also, the subscriber will be reportedly given a minimal assured return for the investment in his fund. Since NPS is market related there is no minimum return assurance so far.
  •  The third amendment reportedly says there will be a 26 per cent cap on the Foreign Direct Investment (FDI) in the scheme. Earlier, the cap was not specified. The BJP has been demanding the FDI cap of 26 per cent to be included in the PFRDA Bill.
The pension bill or the PFRDA Bill suggests changes to how savings of nearly 25 lakh Indians are invested. Currently, these savings are invested in government securities that offer a fixed rate of return. The new bill allows pension funds flexibility on appointing a professional fund management company and lays down roles and responsibilities.

1 comments:

Anonymous said...

dear Sir iam thankful to you for such updation through emails. Good job Sir iam Sujata Singh ASP now posted in APSO INLAND MBI 99. DO YOU HAVE ANY RULING for psychophernia patients can draw family pension. kindly update if present.
regards

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