NPS – State government conference about benefits of National Pension System by PFRDA
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
Conference on Implementation of National Pension System by State Governments
A conference on implementation of National Pension System by State Governments was organized by PFRDA on 10th Sept 2018 at IHC, New Delhi. The prime objective was to provide a forum to all State Governments, where the progress in the implementation of NPS with respect to compliance of timelines in various NPS related activities could be brought to the fore and a way forward could be provided. Higher officials from all State Governments attended the conference.
Also check: National Pension System (NPS) : PFRDA
Dr. Badri Singh Bhandari, Whole Time Member (Economics) in his opening address informed the state government officials about the features and benefits of NPS and various initiatives undertaken by PFRDA. He emphasised the use of online generation of PRAN, dashboard facility for effective monitoring of nodal officers and timely submission of subscriber registration forms and regular remittance of subscriber contribution. He reiterated about the issuance of guidelines by State Governments regarding procedure and timelines to be followed by State Governments for registration of new employees, upload of SCFs and remittance of the NPS contributions. He also touched upon the need of resolving pending grievances and withdrawals on priority by the nodal officers.
Sh. Ajay Narayan Jha, Secretary, Dept of Expenditure, Govt. of India in his address stated that the need of contributory system of pension arose due to the twin objectives to ensure fiscal prudence and secure old age income security in the country. Fiscally strong States are important for progress and development as the pension liabilities of the government has been increasing in terms of proportion of GDP. He advised participating State Governments to monitor the performance of NPS implementation with respect to timely completion of NPS related activities at nodal office level.
Chairman, PFRDA, Sh. Hemant G. Contractor, emphasized on the need for the government officials to be aware of the determinants of pension. NPS, being a contributory and market driven scheme, is different from the earlier pension system in the government, which was a formula based PAYG (Pay As You Go) scheme. In NPS, pension is dependent on various factors, such as the contribution amount, period of contribution, regularity in remittances, returns on investment,
withdrawals, deferment options and choice of annuity. He urged the State governments to adopt online PRAN generation Module (OPGM) and to ensure effective implementation and monitoring of NPS. He also urged State Governments to ensure extending choices similar to those available to non-government subscribers and also to frame Rules for the guidance of government staff handling NPS in the States.
Quite a few presentations were made by various stakeholders under NPS for the benefit of the participants. As on 31st August, 2018, 28 States have implemented NPS and there are 32.51 Lakh subscribers with asset under management of Rs 1,16,227.49 Cr.