Number of Subscribers Registered Under
National Pension System (NPS) has more than Doubled Since April 2012 from about
11.5 Lakh to 23 Lakh:
Chairman,Pfrda ;
Number of States Joining NPS has Increased from 12 to 26 ;
Pfrda Working Towards
Notification of Various Regulations in Respect of Efficient Management of
Funds, Seamless Grievance Handling and Systems for Risk Mitigation and
Containment Among Others
Shri Hemant
Contractor, Chairman, Pension Fund Regulatory Development Authority (PFRDA)
said that the number of subscribers registered under National Pension System
(NPS) has more than doubled since April 2012 from about 11.5 Lakh to 23 Lakh.
He commended the substantial improvement in performance of State Governments since
April 2012.. He said that the Asset Under Management has also increased 7 fold
from Rs.3,300 crores to approximately Rs.24,000 crores while the average
contribution upload per month has increased from Rs.180 crores to approximately
Rs.900 crores. Shri Contractor was speaking at a Conference on Implementation
of National Pension System (NPS) by State Governments organized here today by
Pension Fund Regulatory Development Authority (PFRDA). The main objective of
the Conference was to focus on progress of performance of the State Governments
and also to discuss the implications of the passage and notification of the
PFRDA Act for respective States who are offering NPS to their respective
employees.
Shri Contractor,
Chairman, PFRDA informed, that barring the two States, all the other State
Governments, have notified joining NPS. Since the last such conference held in
April 2012, the number of States joining NPS has increased from 12 to 26, he
added. He said that PFRDA was in talks with the other two State Governments on
their joining NPS.
Shri Contractor,
Chairman, PFRDA, further said that with the passage and notification of the
Act, PFRDA has been conferred with a statutory status. Its mandate covers
development of the pension sector as also framing regulations for the
advancement of the NPS and protection of the interest of the subscribers. He
informed the participants that regulations under the Act are expected to be
notified within the next two months. The Chairman added that steps have been
taken for communicating more frequently with the subscribers to increase
awareness levels about NPS. He directed the State Government officials to
regularly visit the PFRDA website for updates on various policies and
information. Shri Contractor added that there were various points of concerns
which have to be dealt with proactively to protect the interest of the
subscribers. He added that this conference and more in the coming years would
act as a platform for discussion with PFRDA and interactions with other states
to share their best practices.
Earlier speaking on
the occasion, Dr. Anup Wadhawan, Joint Secretary, Department of Financial
Services, Ministry of Finance emphasised upon the fact that NPS of the Central
and the State Governments forms the backbone of the NPS as it is a direct
replacement of the erstwhile DB pension system. Hence, its proper
implementation is very important for the NPS product as well as the sector, he
added. Dr. Wadhawan further stressed upon the fact that the State Government
Nodal offices need to keep the information in respect of their employees like
email ids, mobile numbers and addresses etc. updated in all respects at regular
intervals. Dr. Wadhawan further asked the State Governments to sort-out the
issue of legacy contributions and inclusion of State Autonomous Bodies in an
expeditious manner. He further called upon the State Governments to further the
cause of the Government of India promoted NPS Swavalamban scheme for
economically weaker sections of the unorganised sector, through their
respective Rural Development Departments.
Shri R V Verma, Member
(Finance) laid emphasis on the fact that despite NPS being voluntary in nature;
most of the State Governments have proactively adopted it. He further dwelt on
the fact that the paradigm shift from the Defined Benefit to the Defined
Contribution has put the subscriber’s interest at the centre and the
involvement of the subscriber’s justify from the entry into the system up to
his/her exit becomes prominent. He mentioned that the involvement of the State
Government Nodal offices, as the first point of interaction of the subscriber
attains importance. He added that with the passage of the Act, PFRDA is working
towards notification of various regulations in respect of the efficient
management of funds, seamless grievance handling and systems for risk
mitigation and containment. Shri Verma emphasised that various issues like
expanding coverage, adequately safeguarding the interest of the subscriber and
robust risk management system is of paramount important for protecting the
interest of subscribers. He said that synchronization of information and funds
is very important in NPS; hence Nodal offices have to lay emphasis on the same.
He stated that it is the collective endeavour of the Regulator and the
stakeholders involved i.e. State Governments, State Autonomous Bodies (SAB) and
their Nodal offices, that a two way feedback process has to be in place to
innovate upon the operational aspects of the NPS.
Though it is mandatory
to register under National Pension System (NPS) for the joinees/employees of
the Central Government who have joined or are joining it on or after
01-01-2004, yet most of the State Governments have adopted NPS voluntarily for
their employees from their respective adoption dates. Currently, NPS has 76
Lakh subscribers with total Asset Under Management (AUM) of Rs.68,000 crores.
Out of this, State Government sector has approx. 23 Lakh subscribers with AUM
of Rs.30,000 crores.
Source:PIBNews