Govt may relax norms for joining New Pension Scheme

NEW DELHI: Pension sector regulator, the Pension Fund Regulatory and Development Authority (PFRDA) on Wednesday said that the government may relax the norms to enable employees of central public sector companies to join the New Pension Scheme (NPS).

"We have taken up this matter with secretary, Department of Public Enterprises, and he has prepared a note which he would be soon taking to the Cabinet," said PFRDA chairman Yogesh Agarwal.

The pension regulator said that a number of central public sector enterprises (CPSEs) have written to PFRDA stating that they are unable to join the NPS because the current guidelines mandate minimum 15 years of service to join the pension scheme.

"Even with the government employees earlier, the instruction was if you do not have 20 years of services, you can't have pension. When the govt notified the guidelines for NPS they did away with the criteria," argued Agarwal.

Government's flagship retirement scheme, New Pension Scheme (NPS) has delivered double digit return for the financial year 2012-13. For this fiscal, the government has announced 8.7% interest for deposits under PPF, while it has approved 8.5% rate of interest for 2012-13 for EPFO subscribers. Agarwal said for NPS Swavalamban there has been an overwhelming demand with a CAGR of 90% in the three years of operation and more than 50% of the eligible subscribers being below the age of 40.