1. Will National Pension System age cap be hiked to 65 years, even 70? See what PFRDA wants

Will National Pension System age cap be hiked to 65 years, even 70? See what PFRDA wants

National Pension Scheme has more than 1.71 crore subscribers with total Assets under Management (AUM) of over Rs 2.04 lakh crore.

By: | New Delhi | Updated: September 15, 2017 9:38 PM
Provident Fund, National Pension System, PFRDA, Superannuation Fund Trust, pension scheme, money news, pension, PFREDA, tax benefit, section 80C 80C, section 80CCD, addtional benefit Currently, NPS has more than 1.71 crore subscribers with total Asset under Management (AUM) of more than Rs 2.04 lakh crore. (Reuters)

Pension fund PFRDA regulator has proposed to raise maximum entry age limit for subscribing National Pension System (NPS) to 65 years. The entry age to NPS is now proposed to be increased to 65 years from 60 years and there is an option to continue up to age of 70 years, a Finance Ministry statement issued today said. NPS should also be explored, as an additional retirement benefit, for corporates where superannuation funds are not available and employees are covered only under the mandatory EPFO (Employees’ Provident Fund Organisation) schemes, Pension Fund Regulatory and Development Authority (PFRDA) Chairman Hemant Contractor said.

“With opening up of economy people started getting more job opportunities, switching jobs suitable to their skills and talents. Job switching has become more frequent and people seek more controls on their finances, when they start moving jobs and place from one to another,” he said. The concept of portability came in and people started thinking about having better control on their retirement savings, he said.

Currently, NPS has more than 1.71 crore subscribers with total Asset under Management (AUM) of more than Rs 2.04 lakh crore. Defined benefit pension schemes, which were predominant earlier, became unsustainable not only for the government sector but also for the private sector because of various factors.

A Defined contribution scheme was, therefore, launched in 2004 which was initially only for central government employees, but which was later extended to state government employees and later to the private sector. This scheme is the NPS, which is regulated by PFRDA.

  1. No Comments.

Go to Top