15 Aug, 2013 8:57a.m.

NPS Reform : More contribution allowed under equities, can choose fund managers

Government employees contributing to the National Pension System (NPS) will be allowed to invest a bigger slice of their retirement savings in equities and choose their own pension fund managers. The reform, to be initiated almost a decade after the launch of NPS, can infuse about Rs16,000 crore into India's stock markets.

An employee contributes 10% of the basic salary and the government makes a matching contribution under the NPS. Its investment in equities has been capped at 15% till now, because it has been following the asset allocation rule of the Employees Provident Fund Organisation ( EPFO) that allows to invest up to 15% of its corpus in equities. EPF trustees, however, have chosen to invest nothing at all in equities, thereby depriving India's stock markets the benefit a large pool of long-term savings. The NPS has fixed a higher limit of 50% in equities for voluntary, non-government subscribers. Moreover, only public sector fund managers can manage civil servants' funds now.

Pension Fund Development and Regulatory Authority (PFRDA) had proposed giving government employees the investment choices enjoyed by other individual investors in the NPS and also allowing them to choose their own fund managers.

Read full article @ http://economictimes.indiatimes.com/personal-finance/savings-centre/savings-news/government-staff-to-be-allowed-to-put-more-money-in-equities-under-national-pension-system/articleshow/21834186.cms
Whatsapp Share Button

🏠 Go to StaffCorner.com Home Page





Latest in Important News
News 🕑 05 Jul,19 1:13p.m.
Latest in Other News Sections
RBI cuts repo rates to 6.25. Loans set to get cheaper 🕑 04 Apr,19 12:42p.m.
Sree Chitra Tirunal Institute develops intravenous cancer drug 🕑 26 Mar,19 9:29p.m.
CPAO FAQ For the Beneficiaries Of NPS- Additional Relief Scheme 🕑 13 Mar,19 11:06p.m.
'One Nation One Card' mobility card launched 🕑 05 Mar,19 1:47p.m.
PFRDA working on minimum assured returns for NPS subscribers 🕑 24 Feb,19 1:58p.m.
EPFO's 8.65% interest rate for FY19 is actually equivalent to 13.5%. 🕑 24 Feb,19 11a.m.
EPFO to offer 8.65%, its 1st hike in 4 years 🕑 22 Feb,19 10:51a.m.
RBI cuts repo rate by 25bps. EMIs likely to get cheaper 🕑 07 Feb,19 1:02p.m.
Budget 2019 expectations : IT exemption limit likely to be hiked to Rs 5 lakh 🕑 17 Jan,19 9:29p.m.
Researchers develop plants that can remove cancer-causing pollutants 🕑 27 Dec,18 12:59p.m.