Financial Daily from THE HINDU group of publications
Monday, Dec 12, 2005
Financial Daily from THE HINDU group of publications Monday, Dec 12, 2005 |
|
|
|
|
|
|
|
Home Page
-
Pension Plans Industry & Economy - Social Security Government - Human Resources Pension corpus of new Govt staff swells to over Rs 2,500 cr Sarbajeet K. Sen
New Delhi , Dec. 11 THE pension kitty that would be available for fund mangers from day one of the proposed New Pension System (NPS) is steadily swelling. With pension reforms getting repeatedly stuck in the political quagmire, the corpus built through contributions from Government employees joining service after the cut-off date of January 1, 2004, is estimated to have already grown to over Rs 2,500 crore. "Our estimates suggest that the corpus has already grown to between Rs 2,500 crore and Rs 3,000 crore," Mr D. Swarup, Chairman, interim Pension Fund Regulatory and Development Authority (PFRDA), told Business Line. Schemes on offer: Once the NPS comes into being, the accumulated money would find its way into various debt and equity instruments under the schemes that fund managers would be permitted to offer. The schemes under consideration range from a 100 per cent debt scheme to a growth scheme where 60 per cent of funds could be invested in equities. Choosing the scheme would be left to individual subscribers. The corpus is being built through contributions from the salaries of new Central Government employees and from employees of State governments that have agreed to join the NPS once the PFRDA legislation is enacted. Well over a dozen State governments have already issued notifications to join the NPS to reduce their long-term pension liabilities. The Centre had initially issued a notification whereby all new recruits (excluding armed forces) after January 1, 2004, are required to contribute 10 per cent of their salary for future pension, with a matching contribution coming from the Government. The Centre had given the option to State governments to join the new structure that many of them have willingly accepted. The accumulated corpus is now earning 8 per cent flat rate of interest that is being borne by the governments. More to the kitty: The kitty is likely to bloat even further in the coming months with chances of the PFRDA Bill getting passed in the current session of Parliament appearing remote.
Related Stories:
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page More Stories on : Pension Plans | Social Security | Human Resources
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|