The decks have been cleared for investing up to 15 per cent of pension money for new government employees who have joined service after January 1, 2004. The Pension Fund Regulatory and Development Authority (PFRDA) has allowed the fund managers of new pension scheme (NPS) to invest up to 5 per cent directly in equities and an additional 10 per cent in mutual funds.
The PFRDA has appointed three fund managers — Life Insurance Corporation of India (LIC), State Bank of India (SBI) and UTI Asset Management Company — to facilitate seamless fund transfer and in the selection of fund managers. The regulator on Tuesday appointed National Security Depository Limited (NSDL) as the central record keeping agency (CRA) for 10 years.
The CRA would maintain records of each individual subscriber of the NPS and how they have been invested by different fund managers. The subscriber would have the right to change the fund manager. The government is expected to transfer the funds to fund managers by June.
"We have signed an agreement with National Securities Depository Ltd, appointing it as Central Recordkeeping Agency for the New Pension Scheme for all Central government employees recruited since January 1, 2004," PFRDA Chairman D Swarup said.
At present, 19 states have agreed to join the NPS shortly, he said. The fund managers would offer an option to employees to invest 100 per cent of their pension funds in government securities with assured returns. Around 1,00,000 employees would join the scheme annually and the pension fund would grow by about Rs 1,000 crore a year, he said.
{{/usCountry}}At present, 19 states have agreed to join the NPS shortly, he said. The fund managers would offer an option to employees to invest 100 per cent of their pension funds in government securities with assured returns. Around 1,00,000 employees would join the scheme annually and the pension fund would grow by about Rs 1,000 crore a year, he said.
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