New Delhi: The Lok Sabha on Wednesday passed the crucial Pension Fund Regulatory and Development Authority Bill (PFRDA) even as vociferous protests over missing coal files and petrol price hike shadowed the proceeding in Parliament.
The bill allows subscribers to invest in stock market with a cap. The Pension Bill also provides old age income security for government employees. The New Pension System (NPS) has been made mandatory for all the central government employees (except armed forces) entering service with effect from 1.1.2004, a finance ministry statement said. In all, 26 states have already notified NPS for their employees.
"NPS has been launched for all citizens of the country including un-organised sector workers, on voluntary basis, with effect from 1st May, 2009," the statement added.
The ministry said the PFRDA Bill would also provide subscribers a wide choice to invest their funds for assured returns by opting for government bonds as well as in other funds depending on their capacity for risk.
Key features of the Pension Fund Regulatory and Development Authority Bill:
- Statutory powers to the Pension Authority to act as a regulator.
- Allows subscribers to invest in stock markets with a cap.
- Bill will give subscribers individual pension accounts.
- Subscribers will be able to choose fund managers and schemes.
- Bill provides old age income security for government employees.
- Income security plan optional for the unorganised sector.
- Investment risk will be entirely borne by subscribers.
- Subscribers won't be exposed to risk of government default.
While talking on the Pension Bill in Lok Sabha, Finance Minister P Chidambaram said 28 states have agreed to join the new pension scheme. "We have accepted all recommendations except one," he added.
Meanwhile, the deadlock in Parliament over missing coal files ended only after Chidambaram and Parliamentary Affairs Minister Kamal Nath met top BJP leaders.
(with additional inputs from IANS)
Comments
0 comment