The news just came in that Cabinet has approved Pension Regulatory Bill with certain amendments.
The Bill will be tabled in the next session of Parliament.
Among the important suggestions, the Standing Committee on Finance headed by Yashwant Sinha, had favoured 26% cap on foreign direct investment (FDI) in pension programmes. Currently, FDI is not allowed in pension schemes.
The Bill, which was introduced in the Lok Sabha on March 2011, was referred to the Standing Committee for consideration. The government is likely to take up the Bill for passage during the Winter Session of Parliament beginning November 22.
The Committee had also recommended that subscribers to the New Pension System (NPS) should get an assured return on their investments that is at least equal to the interest rate given by the Employees' Provident Fund Scheme.
The NPS, launched in January, 2004, has about 24 lakh subscribers, mostly those employed by the central government.
In India, no pension fund management company offers a guaranteed pension product.
Subscribers to the Employees Provident Fund Organisation (EPFO) get 9.5% interest on their contribution.
The committee wanted the government to make concerted efforts to extend the coverage of the scheme in both the public and private sector. Currently, pension schemes are being monitored by an interim regulator, the PFRDA.
(With inputs from PTI)
2 comments:
No pension scheme will become popular/acceptable by the public when there is no guaranteed return on their investments.Any individual who has some knowledge human body and the status of a person after one attains the age of 60+ years, will think hundred times before investing in any pension fund.
Throughout the world an individuals is worried about his future when he attain the age of 60+ years and feel insecure as he become older and older and search for a place where he gets maximum return on his investment and also his investments are in safe hands.If this assurance is not available even by Government agencies, then it is a disastrous to him and better not to have any government instead of having a irresponsible government which can not assure its citizens about their safety and future.Governments can not evade the responsibility of protecting citizens. This is ridiculous.
When Govt cannot assure guaranteed returns to pensioners then who will? At the age of 60+ you cant fight anything then who will invest in pension scheme? I really oppose this bill and let Govt give pension after retirement which is most better because number of people coming to Govt job is very less today and cant they feed at least some?
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