New pension system to be offered to more segments

Expressing satisfaction over pension sector reforms, the government in its Economic Survey 2008-09 has said the new pension system (NPS) will be offered to more segments.

"Efforts are underway to extend the NPS to new segments (autonomous bodies, state governments and unorganised sector) and introducing micro-pension initiatives," said the survey tabled in parliament Thursday.

"NPS has been well received by the state governments. Twenty-one state governments have notified similar schemes for their new recruits," it added.

According to the survey, the appointed pension fund managers and the Central Recordkeeping Agency (CRA) have been in talks with the states and union territories for facilitating their entry into the NPS.

As of date, CRA has signed agreements with six state governments.

With the central governments last year deciding to extend NPS to all citizens, the Pension Fund Regulatory and Development Authority will roll out the scheme this fiscal, the Economic Survey noted.

As part of this exercise, the regulator appointed six pension fund managers and 22 points of presence for handling NPS contributions.

Tier-I of the NPS constituting the non-withdrawable pension account has become operational from May 1, and tier-II or the withdrawable account will become operational in about six months.

Last updated on Jul 2^nd, 2009 at 16:37 pm IST--IANS