The scheme has 2.34 crore subscribers as of now, as per PFRDA data
Pune : Pension Fund Regulatory and Development Authority (PFRDA) is looking to induce non-govt employees to subscribe to the National Pension System (NPS) to meet its target of a 40 crore subscriber base in five years, its whole-time member, Sanjay Pandey , said on Monday. the split for non-govt employees is now 80% lump-sum payment and 20% annuity While govt employee subscribers of NPS can withdraw 60% of total accumulated sum as a lump sum and must mandatorily retain 40% in an annuity plan. “The maximum age limit for investors to remain in NPS scheme has been increased to 85 years from 60 years due to the increase in life expectancy.
Going ahead, we will bring in more complex options for more savvy investors,” he said. PFRDA rules for maintaining the mandatory annuity component of NPS have been improved for non-govt employees to provide higher liquidity. The corpus that investors have accumulated over the years will keep on growing.
The scheme has 2.34 crore subscribers as of now, as per PFRDA data. Of the total, close to 91 lakh subscribers are non-govt employees. The regulator is targeting an increase in total number of subscribers to 35 to 40 crore in five years, Pandey said. In Maharashtra, PFRDA has 13.05 lakh private sector employees subscribed to the NPS, of which Pune accounts for 1.13 lakh subscribers. PFRDA has assets under management (AUM) of Rs16 lakh crore at the national level under the NPS, of which Maharashtra accounts for Rs59,690 crore and Pune Rs9,107 crore. PFRDA will also reduce the time taken to process withdrawal applications to T+1 day from the current T+2 days.
PFRDA has also introduced the retirement investment scheme (RIS) under NPS, allowing investors to keep their corpus locked in and withdraw it through systematic payouts as a percentage of the corpus or through the redemption of units. You Can Also Check: Gold Rate in Pune | Silver Rate in Pune | Bank Holidays in Pune | Public Holidays in Pune | Petrol Price in Pune | Diesel Price in Pune | CNG Price in Pune | LPG Price in Pune Stay updated with the latest Pune news.
Pandey said that the regulator is targeting investors from other investment classes to migrate to the NPS through the RIS. Additionally, the regulator has rolled out “NPS Swasthya,” a health insurance scheme for NPS subscribers that aims to provide group pricing benefits to individuals. This scheme is aimed at benefiting such investors,” Pandey said. It has also allowed the “Star NPS” initiative, through which mutual fund distributors and banking correspondents can act as pension product distributors.
“Once a private sector employee retires, he ceases to be covered under his company’s health insurance plan. The premium for individual insurance is very high at an advanced age. “However, steps have been taken to prevent mis-selling. The eligibility for NPS products is very person-specific. So, there are very low chances of mis-selling,” he added. Download the TOI App.