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English Release 29-January 2015
Date Month Year
  • President's Secretariat
  • University of Hyderabad wins visitor’s award for ‘Best University’
  • President of India’s message on Anti Leprosy Day
  • Vice President's Secretariat
  • VICE PRESIDENT RELEASES ‘DISTRICT DEVELOPMENT AND DIVERSITY INDEX REPORT FOR INDIA AND MAJOR STATES’
  • Prime Minister's Office
  • CMD, New Indian Express, presents a cheque of Rs. 1.35 crore towards Prime Minister’s National Relief Fund
  • Election Commission
  • Facts at a Glance- Delhi
  • Min of Culture
  • Renowned singer, music composer, lyricist and actor Shekhar Sen appointed as Chairman of Sangeet Natak Akademi
  • Min of Defence
  • Republic Day Parade – 2015 Awards Announced; Brigade of Guards Regiment & Sikh Regiment Adjudged Joint Winners of Marching Contingent Amongst Services
  • Ministry of Finance
  • Jayant Sinha, Minister of State for Finance Emphasises the Need for Innovative Product Development in an Ever Expanding Capital Market;
  • Min of Labour & Employment
  • Union Labour Minister Shri Bandaru Dattatreya Inaugurates Special Corporate Office of EPFO in Mumbai
  • Min of Law & Justice
  • Shri Justice Narayanan Nadar Paul Vasanthakumar Appointed Chief Justice of the Jammu and Kashmir High Court
  • Min of Micro,Small & Medium Enterprises
  • Union Minister of MSME visits NSIC Incubation Centre Guwahati
  • Min of Mines
  • Mines Ministry holds one-day Workshop in Odisha with State Governments and other stakeholders to explain the provisions of MMDR Ordinance
  • Min of Personnel, Public Grievances & Pensions
  • 18th National Conference on e-Governance
  • ACC Appointment
  • Min of Petroleum & Natural Gas
  • Conventional on Pahal
  • Global Crude Oil price of Indian Basket was US$ 46.55 per bbl on 28.01.2015
  • Min of Science & Technology
  • New CMD Joins National Research Development Corporation (NRDC)
  • Ministry of Tourism
  • Tourism Minister of Philippines Mr Ramon R. Jimenez calls on his Indian counterpart Dr Mahesh Sharma
  • Min of Urban Development
  • Two day consultations with states on smart cities from tomorrow
  • Min of Skill Development, Entrepreneurship, Youth Affairs and Sports
  • Sports Ministry Enhances Award Money for Medal Winners in International Events and their Coaches

Previous Date

 
Ministry of Finance22-January, 2007 20:25 IST
Government to adopt investment pattern of Non-Government Provident Funds for NPS Funds as an interim model

17 STATES NOTIFY DEFINED CONTRIBUTION PENSION SYSTEMS

FM ASSURES STATES OF AMENDMENT IN PFRDA BILL TO PROVIDE OPTION FOR 100% INVESTMENT OF PENSION FUNDS IN GOVERNMENT SECURITIES
Government of India introduced the New Pension System (NPS), for new entrants to services in the Central Government (other than the Armed Forces) with effect from 1st January 2004.This is a fundamental shift from the earlier defined benefit system. However, this applies to only one category of the Indian workforce. The larger goal is to provide a system of old age income security, available to all. In order to give the NPS a statutory basis and to put in place a regulator with statutory powers, Government introduced the Pension Fund Regulatory and Development Authority Bill, 2005.

The Bill has since been recommended by the Standing Committee on Finance with certain amendments which are being considered by Government.

Pending the enactment of the Bill, the Pension Fund Regulatory and Development Authority will be appointing a central record keeping agency (CRA) for Central Government servants under the NPS. In the interim, Government is also in the process of finalizing an arrangement for investment of funds accumulated under the NPS on the pattern for non-government provident funds etc.

Following in the footsteps of Government of India, 17 States have also notified similar defined contribution (DC) pension systems for their new employees. Many of these States are looking to the Centre for further guidance in implementing the new system.

To discuss these issues, the Ministry of Finance convened a conference of Chief Ministers and State Finance Ministers today. The conference was presided over by the Prime Minister.

The majority of the State Government participants generally welcomed the move towards a fiscally sustainable pension system for civil servants and the establishment of an old age income security system for all Indians. Some States that have not yet notified DC pension systems informed that they would do so when the Bill is passed and the NPS architecture is made available.

Many of the State representatives urged Central Government to expeditiously pass the PFRDA Bill and to put in place the record keeping, accounting and investment architecture, as employees under the new system are getting only an administered interest rate and are being deprived of the better returns offered by market based instruments.

The States of Kerala, West Bengal and Tripura reiterated their opposition to the defined contribution system and also to the interim model proposed to be adopted by Central Government for investment and management of NPS funds.

The Finance Minister assured the participants that the PFRDA Bill will be amended to provide an option for investing 100% of pension funds in government securities, entrusting the job of fund management initially only to public sector fund managers etc. He also mentioned that to educate citizens about the NPS and to enable them to take informed decisions, literature on the subject of pension reforms would be widely disseminated by PFRDA in regional languages. PFRDA would allow States that have implemented the DC system to avail of the services of the CRA which will be appointed by PFRDA. It will also strengthen regulations to protect funds from mismanagement. The investment pattern for non-government provident funds, while conservative and restrictive, would be adopted as an interim model, pending the passage of the PFRDA Bill.

Concluding the deliberations, FM stated that the concerns expressed in today’s conference would be taken note of in the amendments to the PFRDA Bill. Furthermore, consultation with the political parties would continue to evolve a consensus in Parliament before the Bill is taken up for consideration and passing.

BSC/BY-18/07
(Release ID :24259)

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