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The pension regulator is exploring ways to extend the coverage of the New Pension Scheme (NPS) to MGNREGA workers.

 

A move that will ensure a safety net for these workers, who otherwise neither have the means nor the ways to save for retirement. “We are keen on extending the scheme to the MGNREGA workers and have proposed this idea to the Ministry of Rural Development. In fact, NPS makes more senses for such people who have a short work life and no means to save for their retirement. Most of these workers do hard labour and, therefore, retire between 45 and 50 years of age,” said a senior official at the Pension Fund Regulatory and Development Authority (PFRDA).

 

The move is expected to benefit both the sides. While on one hand, the pension regulator will be able to widen the reach of the scheme and increase the coverage to a readily available pool of workers, the ministry of rural development, on the other hand, can be assured that there are no dummy accounts and funds meant for the scheme are not haemorrhaged. “We will comply with the KYC norms while enrolling the workers. This way, the government can ensure retirement nest egg for this group and also rest assured that the funds allocated for this scheme reach the right set of people,” the official added.

 

source:indianexpress.com

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