NPS Update: To review the National Pension System The committee constituted under the chairmanship of the Finance Secretary is continuously brainstorming about it. On the other hand, keeping in mind the objective of effectively implementing the National Pension System for Central Employees, PFRDA organized a conference, addressing which PFRDA Chairman Deepak Mohanty said that Affordable and Financially Sustainable Pension Coverage remains an ambitious target for Bhar.
Deepak Mohanty said that PFRDA is committed to ensuring better governance of the pension scheme by spreading awareness among the stakeholders and laying a strong foundation for building a pensioner society as envisioned by the Government of India. He said that for Government NPS subscribers, PFRDA is providing digital solutions for on-boarding of subscribers, servicing, direct remit, paperless exit and withdrawal, partial withdrawal through self-declaration and e-NPS. He has stressed on the government nodal offices to adopt digital safety norms.
He told that the subscribers have been given the option to choose the pension fund and investment pattern. In the case of central employees, the employer’s contribution has been increased from 10 per cent to 14 per cent. He told that if the nodal offices follow the timeline under the rules of NPS, then the interests of the subscribers will be protected.
NPS of central employees except Armed Forces was implemented from 2004, which has also been adopted by many state governments for their employees. At present, the central government has 21.89 lakh subscribers and has assets under management of Rs 2.39 lakh crore as on July 31, 2023.
Although the government has formed a committee to review the NPS, which is constantly discussing with the stakeholders. The committee is studying whether there is a need to change the existing framework and structure of pension of government employees? Also, if the need for change is felt, the committee will give its suggestions for further improvement in the pension benefits of government employees coming to NPS keeping in view the financial burden and budget of the government.
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