Govt may bear maintenance cost of pension

Govt may bear maintenance cost of pension

“The government is likely to bear the charge after PFRDA reaches an agreement with depository NSDL on the low-cost pension model,” an official with the Pension Fund Regulatory and Development Authority told PTI.

Under the present structure, a subscriber has to pay at least Rs 470 as initial charges in the first year and Rs 350 annually to the National Securities Depository (NSDL) for maintenance of account.

“We are holding discussion with National Securities Depository to bring the cost down and we would reach an agreement in two weeks time. Technical matters have already been sorted out,” the official said.

National Securities Depository has agreed to bring its account maintenance cost down but the regulator wants it to be lowered further, the official added.
PFRDA has been asking the government to bear the cost of maintaining accounts of policy holders under the New Pension System after it was thrown open to all citizens from May 1 2009. However, the proposal is still lying with the government and was not announced even in the Budget.
The unorganised sector employs about 86 per cent of the country’s total workers.
Both the low cost and the present model would run separately. The subscribers will have to make their choices.

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