NPS has more than 1.14 crore subscribers with total Asset Under Management (AUM) of more than Rs.1.09 Lakh crores

NPS has more than 1.14 crore subscribers with total Asset Under Management (AUM) of more than Rs.1.09 Lakh crores

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PRESS RELEASE

SECOND PENSION CONCLAVE

UNIVERSAL PENSION- COVERAGE, ADEQUACY AND SUSTAINABILITY

Second Pension Conclave under the theme of “Universal Pension- Coverage, Adequacy and Sustainability” was organised by Pension Fund Regulatory and Development Authority on 4th February 2016 at New Delhi. The objective of the conclave was to provide a platform to discuss, deliberate and to debate key issues pertaining to the challenges in pension sector and the need and ways to expand the pension coverage across the country.

The Hon’ble Union Minister of State for Finance, Shri Jayant Sinha, speaking at inaugural session of the conclave, stressed upon the priority to provide the universal pension security including income security, health and life insurance to the people and believed in the philosophy to empower Indian with tools and knowledge to take ownership of their own retirement. In his address he stressed upon the fact that it is the right time when the advantage of young India with its demographic dividend and the growing economy can be leveraged with skill development and mitigation of low level financial literacy and expanding the coverage of pension with the
participation of private sector with a sense of urgency. He stressed the importance of enrolling people into Pension schemes as quickly as possible, to take the advantage of the large number of young people in the country who would otherwise become dependent on the state and society in the old age.

Shri Hemant Contractor, Chairman, PFRDA, in the keynote address, gave an overview of the developments in terms of NPS infrastructure and product development during the last two years. He informed that PFRDA was instrumental in notifying 14 Regulations defining the role and responsibilities of all stakeholders of NPS. During the last year PFRDA has spruced up the pension product making it user friendly by introducing the online mode for registration and contribution upload under NPS. Currently 16 Banks are providing this facility. Around 35 Banks are using the SBI payment gateway, which can facilitate the said service to all citizens of India. The online exit shall be mandatory from 1st April, 2016 to facilitate the exit process. He mentioned that PFRDA was constantly striving to improve the risk/ reward profile of the investment portfolio and in the process had permitted investment in new investments such as REITS, INVITS, IDFs etc. He also added that effort was required to meet the challenges facing the unorganised sector including low awareness and low income levels to save for the future. An effective distribution channel with proper incentive structure would go a long way in expanding the reach of NPS among the masses. It was important to include as many people in the pension plans, so that they would not face
deprivation in their old age.

The event was graced by presentations and panel discussions by eminent domain experts from World Bank- Mr Onno Ruhl, Country Director, Mr Robert Palacios, Senior Pension Economist and Mr William Price, Sr. Financial Sector Specialist, and distinguished economists, thinkers and academicians like Prof. Mukul Asher, Prof. Charan Singh etc. The Conclave was also attended by the different stakeholders under NPS i.e. Banks, Point of Presence, Corporates participated in the conference.

The discussions covered wide ranging sub-themes viz. (i) Pension reforms as part of the financial sector and fiscal reforms, (ii) social and economic aspects of the pension reforms, (iii)adequacy and sustainability of the pension to fulfil Government of India’s policy and vision of pensioned society with universal pension for all segments of population, (iv) best global practices in the pension sector (v) pension funds as source of long term funds for the infrastructure growth and capital market deepening and (vi) ensuring a clear vision for long term outcomes from the
pension systems.

Awards were given to the banks for their performance in the Atal Pension Yojana. State Bank of India received the award for Highest Atal pension Yojana (APY) Accounts sourced, Andhra Bank for Best Performing Bank in the category of Public Sector Banks, Tamilnad Mercantile Bank for Best Performing Bank in the category of Private Banks, Madhya Bihar Gramin Bank for the best Performing Bank in the category of Regional Rural Banks and Kottayam District Cooperative Bank for best Performing Bank in the category of Cooperative Banks.

Currently, NPS has more than 1.14 crore subscribers with total Asset Under Management (AUM) of more than Rs.1.09 Lakh crores

Place: New Delhi
Date: 04/02/2016

Source : PFRDA