Finance Minister Nirmala Sitharaman had announced the separation of NPS Trust from PFRDA keeping in mind the larger interest of the customers. The trust was set up by PFRDA for maintenance of assets and funds under NPS.
The PFRDA and the NPS Trust are ready for their proposed separation and have discussed their specific areas of action after the separation. Giving the above information, a top official said that the amendment in the PFRDA Act is awaited by the Parliament for the final decision in this matter. It is expected that a bill to amend the law can be passed in the current monsoon session of Parliament.
Pension Fund Regulatory and Development Authority (PFRDA) Chairman Supratim Bandyopadhyay said that amendment in PFRDA Act is necessary for separation. He said, we have till now given permission to the trust to recruit people. They have recruited around 14-15 people and in the next few months they will recruit five more. In this way the total number of employees will become 20.
ready to part
“We are ready to part ways, and at the same time we have decided what specifically is to be done by them (NPS Trust) and what will the PFRDA look after,” he said. Earlier NPS Trust was located in PFRDA building but now it has been shifted to another building. Bandyopadhyay said he got a new CEO a few months ago and is monitoring the work related to the separation.
Finance Minister announced
Finance Minister Nirmala Sitharaman had announced the separation of NPS Trust from PFRDA keeping in mind the larger interest of the customers. The trust was set up by PFRDA for maintenance of assets and funds under NPS. The proposal to separate the two is under consideration for the last few years.
Preparation to make NPS more attractive
With the help of this change, the government wants to make NPS i.e. National Pension System more attractive. In this, more options will be given to the NPS subscribers regarding withdrawal. As per the current rules, an NPS subscriber can withdraw only a maximum of 60 per cent of the corpus at the time of retirement. He has to put the remaining 40 percent in the annuity, which gives a monthly income.
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