The government?s plan to launch the New Pension Scheme for private citizens on April 1 has hit a poll block. The Pension Fund Regulatory and Development Authority (PFRDA) has deferred the launch of the scheme because of the general elections, though it is still holding talks with the Election Commission (EC) to launch the scheme from May 1.
?Keeping in view the model code of conduct for elections, it has not been posXsible for the PFRDA to continue the information campaign and undertake other preparatory activities as originally scheduled. It has, accordingly, been decided to defer the date of the extension of the NPS to other citizens,? said a finance ministry release on Thursday.
?If we do not get the EC?s clearance, we will launch NPS for private individuals from June 1 after the election process is completed,? a PFRDA official told FE .
PFRDA has already selected six pension fund managers and 23 intermediaries to collect citizens? pension savings, but contracts are yet to be signed. ?It?s not a happy development. The calendar for the rollout was announced six months back, so this could have been anticipated,? said UK Sinha, chairman of UTI AMC, one of the selected fund managers.