Conference to facilitate CPSEs implement National Pension System

Speed Post News Network

New Delhi : Pension Fund Regulatory and Development Authority (PFRDA) organised a conference on National Pension System (NPS) for Central Public Sector Enterprises (CPSEs) at the India Habitat Centre (IHC), New Delhi, with the objective of informing CPSEs benefits and features of NPS and of addressing their queries on NPS.

Based on the recommendation of the 3rd Pay Revision Committee, the Department of PSE notified dispensing with the condition of minimum 15 years of service and superannuation from CPSEs to avail the pension benefit implemented by CPSEs. Separately, the Government has also amended the Income Tax Act providing for tax free migration of superannuation funds to NPS. This provision will facilitate the CPSEs to implement NPS for their employees. The total employee strength in CPSEs stood at 12.91 lakh (excluding contract workers) in 2014-15, according to a PIB release. The conference saw an active participation of more than 55 CPSEs with around 150 participants.

In his Inaugural Address, Badri S. Bhandari, Whole Time Member, PFRDA welcomed the participants and expressed the endeavor of PFRDA to expand NPS across all the sectors in the country in affordable and sustainable manner. He explained the benefits of NPS and communicated the returns generated by Pension Funds since inception, which has been over 10% since inception. As on September 30, 2017, there were 1.78 crore subscribers.
Hemant G Contractor, Chairman, PFRDA, delivered the Keynote Address on the origin of NPS. The need for fiscal sustainability led to the shift from defined benefit model to defined contribution model of pension scheme and this shift has necessitated empowering subscribers with financial literacy to enablethem have a better understanding of where and how their funds are invested.  Individuals can now subscribe to NPS up to the age of 65 years and can defer the purchase of annuity to three more years post retirement and defer lump-sum withdrawal in phased manner over a period of 10 years, he said.