NPS has made pension accessible to everyone: PFRDA Chairman

Jaipur: Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty on Friday said that the National Pension System (NPS) has made pension accessible to everyone in the country.

“Previously, pensions were a benefit exclusive to government employees. However, with the introduction of the NPS, this benefit is now accessible to everyone,” the PFRDA Chairman said while addressing an interactive session on the NPS for the corporates in Jaipur which was organised by FICCI Rajasthan State Council in collaboration with PFRDA.

He said that out of the 468 million workforce in the country, at least 90 per cent are employed in the unorganised sector which are lacking statutory access to social security benefits.

“In this context, NPS becomes a crucial tool for ensuring the financial security of employees’ spouses and children,” he said.

He also highlighted that market returns are quite favourable, as NPS is a regulated, low-cost product, adding that with India’s growing economy and ageing population, securing a pension is a wise decision, especially when there are many demands on our income.

The corporates should proactively give the knowledge of NPS to the employees, he added.

Chief General Manager of PFRDA, Sumit Kumar highlighted the features of NPS such as attractive returns, transparent and online access, portable unique PRAN, low cost, flexible choices and tax efficiency.

Head of Retirement, Willis Towers Watson, Ritobrata Sarkar gave the employers’ as well as the employees’ perspectives on retirement benefits planning.

He said that most of the employees are primarily dependent on employer retirement plans, adding that retirement benefits are an important driver for attraction and retention.

General Manager of the State Bank of India (SBI), Ritu Gaur highlighted that NPS is a core retirement savings product and a long-term wealth generation scheme.

She informed that SBI is the oldest point of presence for NPS with the largest subscriber base for the scheme and a 20 per cent market share pan India.

She said that the strength of SBI is the network of 22,500 branches that functions as a bridge between PFRDA, Corporates, subscribers and designated NPS intermediaries.