National Pension System and Atal Pension Yojana corpus surpasses Rs 12.3 Lakh Crore, targets Rs 15 Lakh crore this fiscal

This is more than the national average of 25% and it is due to larger participation of women in the workforce, he said.
Image used for representational purposes only.
Image used for representational purposes only.(File Photo)

CHENNAI: The Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty on Friday said the total corpus under the National Pension System (NPS) and Atal Pension Yojana (APY) has crossed Rs 12.3 lakh crore as of now and a target has been set at Rs 15 lakh crore this fiscal year.

Addressing reporters here, Mohanty said the government employees covered under the national pension scheme is 92 lakh while in the private sector it is 56 lakh. In Tamil Nadu, he said 30% of women in the private sector from Chennai and 27% of them in the private sector in rest of the state are covered under the national pension scheme.

This is more than the national average of 25% and it is due to larger participation of women in the workforce, he said. He said that a total of 16,000 corporates (both public and private) have joined the NPS but the take up rate among the corporate employees is not that high and PFRDA is increasing awareness so that more corporate employees join NPS.

Mohanty said in Tamil Nadu 2,500 corporates have taken to the NPS system. These include 4 lakh private sector employees.

Parrying away queries on Tamil Nadu not joining NPS, he said it is a flexible low-cost regulatory scheme. According to him, the returns under NPS are good. He added that the annual return on equity has been over 13%. Last year, since the equity market did well, the returns have been 33%.

As per the PFRDA rules, a subscriber can withdraw a maximum 60% of pension money as lumpsum and the remaining 40% must be mandatorily used for buying annuity. He said that changes have been brought in the NPS system where the 30 per cent lumpsum which has to be drawn during retirement continues to stay with annuity funds until the age of 75.

Mohanty said the PFRDA is planning to launch a Balanced Life Cycle (BLC) fund as an additional investment avenue with enhanced equity exposure under the life cycle fund. This would be launched during the period from July to September.This pension fund will be 50% equity and 50% debt.

Plans to launch balanced life cycle fund

PFRDA Chairman Deepak Mohanty said PFRDA is planning to launch a Balanced Life Cycle (BLC) fund as an additional investment avenue with enhanced equity exposure under the life cycle fund. This would be launched during the period from July-September.This pension fund will be 50% equity and 50% debt. he said it is a flexible low-cost regulatory scheme.

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