Low-cost pension plan set to take off on April 1

 
“We would launch a low-cost pension scheme from April 1, 2010. Individuals could join the scheme as part of a self-help group,” an interim regulator Pension Fund Regulatory and Development Authority (PFRDA) official told PTI.

Under the new pension scheme, a subscriber will have to initially pay Rs 105 and after that Rs 70 every year for maintenance of account. For normal scheme, the joining and annual charges are Rs 470 and Rs 350 respectively. “Besides the initial payment, the account holder under the new scheme will have to pay Rs 35 to obtain Permanent Retirement Account Number (PRAN),” the official added.

There would be no lower limit for contribution to the pension fund, the official said, adding the Self-Help Group (SHG) can play a major role in popularising the scheme and supplementing the efforts of the government to promote financial inclusion and provide social security to a large number of people.