The government may have shied away from tabling the Pension Fund Regulatory and Development Authority (PFRDA) Bill in the Winter session, but the New Pension Scheme (NPS) would see its membership base expanding significantly in 2010. Public sector general insurers, who lifted a long-standing hiring freeze in 2009, have agreed to bring their new workforce under the NPS, as has Life Insurance Corporation.
Similarly, following the lead of National Aluminum Company (Nalco) Ltd, another public sector unit, NTPC Ltd, is moving its employees’ superannuation pension funds into the NPS.
“It’s always easier for others to join after one PSU takes the lead. Nalco was the test case and once we finalised the modalities to transfer their superannuation pension funds into the NPS, the template was ready. We expect other public sector firms will also evince interest,” a senior PFRDA official told FE. The interim regulator has also written to the department of public enterprises to help other central PSUs bring their workers into the NPS-fold — for pension savings beyond the mandatory contributions at 24% of salary to the Employees’ Provident Fund Organisation.
While PSUs are looking at the NPS, thanks to a pay revision panel recommendation, the finance ministry has been holding discussions with public sector general insurance companies to join the scheme. The five insurers to be approached are New India Assurance, United India Assurance, National Insurance Company, General Insurance Corporation and Oriental Insurance.
“All five have agreed in principle to join the NPS. We are also discussing the option with LIC,” a finance ministry official said. “At present, only about 300 employees would become members of the NPS. But once the general insurance companies begin recruiting on a larger scale, we expect another 20,000 employees to join,” the official said.
The North Block has also been urging public sector banks to transfer their employee superannuation funds into the NPS, and the Indian Banks’ Association has decided ‘in principle’ to move new workers in public sector banks to the NPS. With PSU banks expected to hire at least 1.5 lakh new workers by 2011, the NPS membership base will rise significantly from its current strength of 6.5 lakh members. PSU and insurance firms aside, several of the 21 state governments that agreed to join the NPS are yet to transfer their workers’ contribution records and funds. Currently, only three states have moved into the NPS fold.
While the scheme was opened up to citizens on a voluntary basis in May 2008, around 3,000 workers have signed up so far. Officials attribute the poor response to the intermediaries’ conflict of interests as they earn better commissions selling other financial products. The high record-keeping costs are also seen to be a deterrent.
Though the PFRDA has decided to call for fresh bids for a second central record-keeping agency to break NSDL’s monopoly, reaching the 1 million members milestone is crucial for the PFRDA as it will reduce record-keeping costs by 20%. NSDL has promised to cut annual maintenance charges from the current Rs 350 to Rs 280 and transaction costs from Rs 10 to Rs 6 per transaction. Source:Financial Express
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|TOP ARTICLES - EXCLUSIVE NEWS|
|50% DA Merger – A Sad End to A Demand...! |
On 01.01.2011, DEARNESS ALLOWANCE crossed 50%. It started from '0' in 2006 and, within 5 years, i.e., in 10 instalments, it has completed 50%.
|Government has decided to raise the Retirement age to 62 |
What is the background behind this news?
| EXPECTED DEARNESS ALLOWANCE FROM JULY 2014|
This is the first thing that all Central and State Government employees alike would eagerly like to know!
|DA CALCULATION SHEET |
We are proud to be the first to formulate the DA Table.
|7th PAY COMMISSION NEWS|
Prime Minister Approves the Constitution of Seventh Central Pay Commission
|LEAVE TRAVEL CONCESSION |
Will Air Travel Continue for the Next 2 Years?
| 100% D.A from January 2014 – Some Allowances and Advances Rise by 25%|
The Fifth Central Pay Commission had recommended uniform neutralization of DA at 100% to employees at all levels
|Will 7th CPC Add Lustre to the CHILDREN’S EDUCATION ALLOWANCE & HOSTEL SUBSIDY SCHEME? |
It was only in the 6th CPC that the CHILDREN’S EDUCATION ALLOWANCE & HOSTEL SUBSIDY was introduced to Central Government employees.
|5th CPC had ACP, 6th CPC had MACP; what does 7th CPC have?|
Assured Career Progression (ACP) is a boon to employees who have been suffering without promotions for years.
|LIST OF HOSPITALS / DIAGNOSTIC CENTRES EMPANELLED UNDER CGHS |
The “Central Government Health Scheme” (CGHS) provides comprehensive health care facilities for the Central Govt. employees and pensioners and their dependents residing in CGHS covered cities
|Possibility to announce Interim Relief before elections |
Proposals of Enhancement of Retirement age and Merger of D.A may not materialize
CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS NEWS
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