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Friday, March 20, 2009

Pension Fund Regulatory and Development Authority

Defers the date of the extension of the NPS to non government sector

The Pension Fund Regulatory and Development Authority have decided to defer the date of the extension of the New Pension System (NPS) to other citizens (for non government sector).

In August, 2008, Government advised PFRDA to extend the NPS to all citizens. Since considerable preparatory work was involved, PFRDA decided to extend NPS to all citizens from 1 April 2009. However, keeping in view the Model Code of Conduct for Elections, it has not been possible for PFRDA to continue this information campaign and undertake other preparatory activities as originally scheduled. So the authority has postponed the launch.

New employees of the Central Government were brought into NPS w.e.f. January 1, 2004. Government transferred the accumulated funds along with its matching contribution to the three Fund Managers appointed by PFRDA for investment management on 1 April 2008.

As part of that exercise, PFRDA has already appointed six new Fund Managers and 23 Points of Presence for managing NPS contributions pertaining to all citizens, including workers of the Unorganised Sector. PFRDA had also brought to the notice of the general public the fact of NPS being made available to all citizens through an advertisement released on 28th February, 2009.

The following entities have been approved by PFRDA for appointment as Sponsor(s) of Pension Fund/Pension Fund under the New Pension System for all citizens other than government employees covered under NPS:-

1. ICICI Prudential Life Insurance Company Limited

2. IDFC Asset Management Asset Management Company Limited

3. Kotak Mahindra Asset Management Company Limited

4. Reliance Capital Asset Management Company Limited

5. SBI Pension Funds Limited

6. UTI Retirement Solutions Limited

The PFRDA has appointed 23 entities as Points of Presence (POPs) that includes 17 banks. Among the banks, State Bank of India and its six associates, Union Bank of India, Allahabad Bank, Oriental Bank of Commerce, IDBI Bank have been appointed as POPs.

Private sector lender like ICICI Bank, Kotak Mahindra Bank and foreign bank Citibank will also function for the NPS for all citizens other than government employees. Other entities include LIC, UTI Asset Management Company, Reliance Capital, IL&FS Securities Services and Bajaj Allianz General Insurance.

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