Source Name: Assocham
|
Pension Reforms and Government Impetus Needed for NPS Growth
|
India ASSOCHAM calls for incentivisation of the National Pension System (NPS) to make it attractive as a saving avenue. The Governments’ objective of extending social security cover to all citizens and fulfilling the need of higher post retirement income will only fructify if returns on the scheme are market driven. As on August 7, 2014, NPS had only 7.1 million subscribers and Assets Under Management (AUM) of ~ INR 58,000 Crore, with less than 2 per cent from the unorganized sector. Despite its promising concept and low-cost model, the scheme is yet to take off on a significant scale. The launch of the new user friendly, informative PFRDA website is indeed a welcome step and will provide real time access and information to beneficiaries. ASSOCHAM recommends the following enablers to provide necessary stimulus to the NPS:
ASSOCHAM is fully committed to work the Government and PFRDA to formulate regulations for sound and sustainable growth of the pension system, setting up an efficient and responsive grievance redressal mechanism and encouraging industry participation to develop new products for the benefit of pension subscribers. Sincerely, Rana Kapoor President, ASSOCHAM |