New pension system soon, to cover unorganised sector

NEW DELHI: The Pension Fund Regulatory Development Authority (PFRDA) will soon roll out a new pension system to offer benefits to each citizen of the country, including workers in the unorganised sector, a senior official said on Thursday.

"The new pension system will come into effect from April 1, 2009 and cover 80 million people in its first phase," PFRDA executive director ��� retirement planning, Meena Chaturvedi, said at a conference organised by industry chamber Assocham. The finance ministry has already earmarked a budget of over Rs 1,800 crore for such pension benefits.

Ms Chaturvedi said that PFRDA has already shortlisted six fund managers for the new pension system. "The authority would also appoint 23 other agencies to manage and execute the new pension fund scheme at a macro level," she added. However, she didn't disclose names of the fund managers.

The regulatory authority will announce detailed guidelines and subscription amount for the new pension system towards the end of this month. These guidelines are being finalised on the basis of recommendations of the Parekh Committee.

According to a survey conducted by PFRDA, the new pension system will offer social security to 87% of the population which, at present, is deprived of any pension benefits.