As many as five private fund managers may be allowed to manage the pension corpus of government employees, who are covered under the National Pension Scheme or NPS. A notification to this extent could be issued soon.
"There is a proposal to allow more private fund managers to manage the pension corpus of government employees, a move that would provide them a wider choice," a source told HT on the condition of anonymity.
Unions have opposed the move. "We are opposed to private sector fund managers handing pension corpus of government employees. Public sector fund managers have performed well and there is no need and reason to allow private sector into this," said Ashwini Rana, general secretary, National Organisation of Bank Workers.
Other unions also said they would oppose the proposal.
At present, there are about five million subscribers, of which more than half are government employees. There are 1.15 million central government employees and 1.68 million state government staff.
Three fund managers currently manage the pension corpus of government staff (see graphic).
"It is important to provide all government employees access to private sector private fund managers as well, as is the case for those who are not in the government," Reliance Mutual Fund CEO Sundeep Sikka said.