Pune: PFRDA Hosts Meeting To Promote National Pension System Adoption Among Corporates

Pune: PFRDA Hosts Meeting To Promote National Pension System Adoption Among Corporates

The National Pension System (NPS) was introduced for all Central Government employees (excluding armed forces) joining the workforce on or after January 1, 2004

ANIUpdated: Saturday, May 04, 2024, 11:14 AM IST
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Pune: PFRDA Hosts Meeting To Promote National Pension System Adoption Among Corporates |

In a bid to raise awareness about the National Pension System (NPS) among corporates, the Pension Fund Regulatory and Development Authority (PFRDA) organised a "Round Table Meeting" in Pune.

Chief Human Resource Officers (CHROs) from 20 selected corporates based in Pune participated in the event.

The National Pension System (NPS) was introduced for all Central Government employees (excluding armed forces) joining the workforce on or after January 1, 2004.

Many State/UT Governments have also adopted NPS for their new employees. Since May 1, 2009, NPS has been open to all Indian citizens on a voluntary basis, including those in the corporate sector.

The Atal Pension Yojana (APY) was launched on June 1, 2015, for unorganised sector workers. As of April 27, 2024, the total subscribers of NPS and APY exceed 7.38 crore, with total Assets Under Management (AUM) reaching 11.80 lakh crore.

The number of subscribers in the private sector, including corporates, exceeds 55 lakhs, with an AUM crossing 2.29 lakh crore.

The primary objective of these meetings is to engage with corporations and encourage them to adopt NPS or enhance its penetration by educating them about retirement planning, corporate NPS benefits, including tax incentives for employers and employees, and financial wellness.

This initiative aims to extend the benefits of the NPS in the formal private sector, aligning with the government's broader objective of establishing a pensioned society by 2047.

Currently, there are 16,060 corporates enrolled in NPS, collectively accounting for 19.68 lakh subscribers nationwide. In Maharashtra alone, 5,227 corporates are registered, contributing to a total of 2.94 lakh subscribers.

Among these, 876 corporates are based in Pune, with a combined subscriber count of 0.73 lakh.

The keynote speaker for the event was Deepak Mohanty, Chairman of PFRDA. He emphasised the urgent issues associated with an aging society and increasing life expectancy, stressing the critical need for adequate pension coverage.

Mohanty further highlighted that relying solely on one social security scheme is insufficient for building a robust retirement corpus. He elaborated on the efficiency, transparency, and returns offered by the NPS.

He urged corporates to consider adopting NPS to provide a platform for employees to join NPS and further, also to educate and nudge them to increase the uptake rate of NPS in corporates.

Arvind Laddha, President of Mercer India, addressed the audience and stressed the importance of retirement planning, how it helps in supporting post-retirement financial well-being and encouraged attendees to learn about the benefits of NPS.

Other notable speakers included Sumit Kumar, Chief General Manager at PFRDA, Bahroze Kamdin, Partner at Deloitte India, and Jyotsna Tiwari, Associate Director at Mercer.

The speakers covered topics such as Retirement Benefits Planning, features and advantages of Corporate NPS, and tax benefits under NPS.

The session also included an interactive segment with corporates to decode contracting challenges for onboarding NPS and its implementation.

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