The government is moving fast on pension reforms. While the finance ministry is ready to take the Pension Fund Regulatory and Development Authority (PFRDA) Bill to the Cabinet for approval this week, interim pension regulator PFRDA has drawn up a multi-pronged strategy to expand the reach of the new pension scheme (NPS).
The PFRDA Bill, floating in suspended animation since the NDA regime, is on the finance ministry’s priority list for introduction and passage in upcoming Winter Session. The ministry is also considering PFRDA’s proposal to grant annual incentives to intermediaries selling NPS to help propagate the retirement savings habit in India’s 400 million-plus workforce, 90% of whom have no social security net.
The regulator will also launch a Rs 10-crore advertising campaign for NPS shortly. It also has plans to set up an online investment facility and appoint new sales intermediaries, including 2,000 high-traffic post offices across the country.
Since NPS was opened up for voluntary pension accounts this May, the scheme has got just about 2,400 memberss. Sprucing up the scheme’s sales front is important as some of the initial points of purchase (PoPs) appointed by PFRDA have failed to open a single NPS account.
The regulator has also decided to allow subscribers to open an NPS account on the Internet and switch between PoPs.
The second week of November will also see the unveiling of a Rs 10-crore advertising campaign to create awareness about the NPS. The PFRDA has sealed a pact with the Department of Posts that will add 2,000 major post offices to the NPS.
source:financial express
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