National Pension System gaining traction, says PFRDA chief

The National Pension System (NPS) is gradually gaining traction with many public sector enterprises transferring superannuation funds into it, a top official said on Thursday. Around 7,900 corporates have joined the NPS with a corpus of Rs 50,000 crore involving 10 lakh subscribers," he said. Bandopadyay said more awareness has to be created among the companies so that the joining number increases.

The National Pension System (NPS) is gradually gaining traction with many public sector enterprises transferring superannuation funds into it, a top official said on Thursday. Speaking at an ICC webinar Pension Fund Regulatory & Development Authority (PFRDA) Chairman S Bandopadyay said though the penetration levels of the pension scheme is low in India, many CPSEs are now transferring their own superannuation funds to NPS.

He said decent returns to beneficiaries are being provided and the CAGR for central government funds is 9.95 per cent, with 15 per cent equity exposure only. "Nowadays, many corporations are placing importance on retiral benefits for its employees. Around 7,900 corporates have joined the NPS with a corpus of Rs 50,000 crore involving 10 lakh subscribers," he said.

Bandopadyay said more awareness has to be created among the companies so that the joining number increases. Regarding the Atal Pension Yojana, he said during the last five-and-half months, 2 million people have joined, while their total number is 2.45 lakh.