The new pay scale would be set based on the recommendation of the Sixth Pay Commission, which is slated to submit its report early next year. The current outgo on pension is around Rs 65,000 crore. According to sources, the average pay package of a government employee is likely to go up by 25% once the new scale is put in place.
As many as 19 states have already joined the NPS. The Pension Fund Regulatory and Development Authority (PFRDA) has decided to appoint about three pension fund managers to handle the NPS corpus.
Though the current corpus is not very huge, it is likely to see a significant increase in the coming years, sources said. Keeping the growth potential of the corpus in mind, the regulator has taken a decision to appoint two to three pension fund managers, a source said. In the initial phase, there would be only public sector pension fund managers, which, however, can have a direct or indirect foreign investment not exceeding 26% as recommended by the Standing Committee on Finance.
However, the PRFDA Bill is yet to see the light of the day. Due to strong opposition from the Left parties, the government has been unable to table it in Parliament. The NPS is mandatory for all government employees joining services from January 1, 2004. There are about five lakh employees under the new system. It may be noted that the Left-ruled states have refrained from joining the NPS.
The corpus, which at present is estimated at Rs 1,700 cr, has been swelling by about Rs 750 cr every year