NPS corpus seen rising 30% to Rs 7.5 lakh crore by end-FY22: PFRDA

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October 02, 2021 3:45 AM

“Total NPS corpus was at Rs 6.67 lakh crore as on September 25, 2021, up from Rs 5.78 lakh crore as on March 31. Our internal assessment is that by the year end, we will reach Rs 7.5 lakh crore,” Bandyopadhyay said.

Currently, there are seven fund managers, namely, HDFC Pension Management, ICICI Prudential Pension Funds Management Company, Kotak Mahindra Pension Fund, LIC Pension Fund, SBI Pension Funds, UTI Retirement Solutions and Aditya Birla Sun Life Pension Management.Currently, there are seven fund managers, namely, HDFC Pension Management, ICICI Prudential Pension Funds Management Company, Kotak Mahindra Pension Fund, LIC Pension Fund, SBI Pension Funds, UTI Retirement Solutions and Aditya Birla Sun Life Pension Management.

With the corporate sector and individuals showing greater interest in the national pension system (NPS), the NPS assets under management will likely rise 30% on year to Rs 7.5 lakh crore by end-FY22, the Pension Fund Regulatory and Development Authority (PFRDA) chairman Supratim Bandyopadhyay said on Friday.

“Total NPS corpus was at Rs 6.67 lakh crore as on September 25, 2021, up from Rs 5.78 lakh crore as on March 31. Our internal assessment is that by the year end, we will reach Rs 7.5 lakh crore,” Bandyopadhyay said.

Private individual enrolments (excluding Atal Pension Yojana) grew 35% on year to 18.28 lakh as on September 25, 2021, while corporate sector subscribers has shown 20% growth to 12.59 lakh during the period. The Central government employee subscribers grew 4.4% on year 22.24 lakh as on September 25, 2021, while state governments subscribers grew 10% to 53.79 lakh during the period. Total number of subscribers as of September 25, 2021, was 4.6 crore, up 24% from a year ago and 8.5% since March 31, 2021.

To foster greater competition in fund management, PFRDA has recently given its nod to two new entrants into NPS fund management — Tata Asset Management and Max Life Insurance. Axis Mutual Fund is also in the process of joining as a fund manager, Bandyopadhyay said.

Currently, there are seven fund managers, namely, HDFC Pension Management, ICICI Prudential Pension Funds Management Company, Kotak Mahindra Pension Fund, LIC Pension Fund, SBI Pension Funds, UTI Retirement Solutions and Aditya Birla Sun Life Pension Management.

In June, the PFRDA has permitted engagement of individuals who are working as business correspondents or agents within their existing business structure for facilitating the distribution of pension schemes.

Bandyopadhyay said individual distributors would play a key role expansion of NPS among the masses. The regulator is also examining if the fees paid to distributors could be enhanced from the current rate of 0.25% of the contribution by a subscriber.

With longevity of life and working life going well beyond 60 years, the regulator has enhanced the entry age for NPS to 70 from 65 and exit age from 70 to 75 years, in the all citizen and corporate schemes.

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