NPS- National Pension System launches new schemes: Deepak Mohanty, Chairperson-PFRDA
Chennai, June 14, 2024: Chairperson-PFRDA, Dr.Deepak Mohanty during the press meet outlined on the salient features and new schemes of NPS. Following are the points discussed during the meet.
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| Dr.Deepak Mohanty, Chairperson-PFRDA |
Recent Milestones achieved by NPS / APY:
- 12 Lakh Cr. AUM on 14th May 2024.
- AUM has increased from Rs 10 lac crore to Rs 12 lac crore in less than 9 months (24 August 2023 to 14th May 2024).
- Private Sector AUM reached 2.36 Lakh Cr. as on 18th May 2024.
- The number of subscribers under private sector has reached 56.1 Lakhs
- Share of Private Sector Subscribers in NPS has increased from 21.6% in Mar-19 to 37.5% in Mar-24.
- Share of Private Sector AUM in NPS has increased from 13.1% in Mar-19 to 20% in Mar-24.
- In FY 2023-24, 9.4 lakh subscribers have on-boarded under NPS.
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Press meet Youtube Video link ЁЯСЗ
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Subscriber-centric initiatives undertaken:
- DSP Pension Fund Managers Pvt Ltd has been registered as the 11th Pension fund; Certificate of commencement of business has been issued to the PF.
- Systematic lump-sum withdrawal.
- Choice of multiple PFs for each Asset Class.
- 100% investment in Equity is allowed under Tier-II.
- NPS account under Corporate Sector Model would be auto continued at the age of 60 or superannuation age.
- Annuity purchase can be deferred up to the age of 75 years.
- NPS withdrawal form may be considered as Annuity proposal form for offering the immediate annuity product by ASPs.
- Launch of Balanced Life Cycle (BLC) Fund as an additional investment avenue with enhanced equity exposure under an LC fund.
Initiatives for a favorable NPS ecosystem:
- Industry body for pension advocacy like AMFI & Insurance Council comprising representatives of intermediaries in the NP architecture.
- Risk profiling of Schemes – Asset Classes managed by Pension Funds
- Rationalization of regulations/compliance reduction.
Pivotal role played by the Distribution channel –
- Registered PoPs - PSBs, Pvt Banks, RRBs, SFBs, NBFCs, Fintech Co.
- Spreads awareness about pensions, need for retirement planning and how NPS & APY ensures old age income security for citizens.
- Provides last mile connectivity – acts as an interface between subscriber and NPS architecture – on-boarding, servicing and counselling.
- Updates its clients on benefits of NPS/APY through routine communications and social media messaging.
- Reaches out to the big corporates for increase employee participation
- Channelizes household savings into investment (pension planning) and enables creation of a pensioned society
Why subscribers are choosing NPS-
- In the unorganized sector, with no formal pension arrangements, individuals doing retirement planning on their own.
- NPS provides a worthy alternative- It is a Regulated, professionally managed, Low cost, Transparent and Portable pension plan well suited for any individual planning to save and invest for his/ her old age income security.
- Provides flexibility of contributions and multiple choices of Pension Funds and asset allocation to accumulate a decent retirement corpus.
- NPS has various tax incentives and has generated attractive and competitive returns by the PFs.
- Tier I- Mandatory, non-withdrawable pension account and Tier II- Withdrawable & Short-term investment account.
PFRDA’s steps towards capacity building and outreach
- Broad basing the distribution network through- Points of Presence (PoP)- PSBs, Pvt Banks, RRBs, SFBs, NBFCs, Fintech Companies
- Incentivizing the distribution partners
- PFRDA is part of National Centre for Financial Education (NCFE)
- PFRDA takes NPS/APY awareness initiatives through:
- Tie-ups with trade bodies – FICCI, ICC, CII.
- Awareness session to Corporates
- Annuity Literacy Programme (ALP)
- Engagement o Retirement Planners (RP)
- Subscriber Awareness Programmes by CRAs.
- Trainings on NPS/APY through empanelled Training Agency
- Hosting of Pension Literacy Website – Pension Sanchay
- Social Media Campaigns – Facebook, Twitter, LinkedIn, YouTube.
- Advertisements through print/digital media, radio, TVC, etc.
- Observing ‘NPS Diwas’ on 1st Oct which is designated by UN as the International Day of Older Persons.
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