National Pension System (NPS)
Pension Fund Regulatory and Development Authority (PFRDA) originally established by the Government of India through a resolution dated 10th October, 2003 & 14th
November, 2008, has since attained a statutory status post the passage of Pension Fund Regulatory and Development Authority Act, 2013. In accordance with the provisions of the said Act PFRDA is mandated to promote old age income security by establishing, developing and regulating pension funds, to protect the interest of the subscribers to the schemes of pensions funds and for matters connected therewith or incidental thereto.
PFRDA has established the institutional framework and infrastructure required for
administering the ‘National Pension System’ (NPS) for government employees as well as other citizens of India. For servicing of NPS subscribers, various intermediaries such as Central Recordkeeping Agency (CRA), Pension Fund Managers (PFMs) for professional management and investment of subscriber funds, Points of Presence (POP’s) for distribution of the product, Trustee Bank, Custodian and NPS Trust have been appointed and are functional.
National Pension System is a defined contributory pensions system introduced by Government of India making it mandatory for all Central Government employees with effect from 01st Jan, 2004 and Government authorized PFRDA vide Ministry of Finance, Department of Financial Services letter No. 11(11)/2008-PR dated 29th July 2008 to extend NPS on a voluntary basis to all citizens of India including workers of the unorganized sector. NPS is now available to all citizens of India with effect from May 1, 2009, other than government employees already covered under NPS.
National Pension System is an important milestone in the development of a sustainable and efficient defined contribution pension system in India. It has the following broad objectives: To provide old age income Safe and reasonable market based returns over the long term Extending old age security coverage to all citizens
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