The Government of India established the Pension Fund Regulatory and Development Authority (PFRDA) on 10 October 2003 for the development and regulation of the pension sector. The National Pension System was launched on 1 January 2004 with the objective of providing retired income to all citizens. National Pension System is a type of pension cum investment scheme which guarantees market based returns. When an employee or officer retires under NPS, then he is eligible to withdraw 60 percent of his total accumulated corpus and the remaining 40 percent of his linked amount will compulsorily be deposited in the pension scheme. This system started from January 1, 2004. Through this scheme, the government has tried to free itself from the responsibility of pension. Under this scheme, the central government has appointed three fund managers for the maintenance of the government system, which are as follows-
- S.B.I. PENSION FUND
- U.T.I. RETIREMENT SOLUTION
- L.I.C. PENSION FUND
These three fund managers, NPS of central and State government employees and officers, Maintains accounts. Apart from this, the states which have implemented the new pension system, then the NPS of the employees and officers coming under this system, the accounts are also maintained by these three fund managers.
When the employees and officers working in the government system will be separated from the new pension system, then it will be very important to focus on the mentioned topic for new thinking, new strategy to run this system smoothly. Arrangements will be made in a prescribed manner so that these three fund managers do not suffer any kind of loss due to the mandatory provision made by it.
For this, any customer who earns income by following the work described under the mentioned subject, then that person must compulsorily register for N.P.S.
The responsibility of completing this registration system for pension will be allocated. This responsibility allocation can be given only to the three fund managers constituted for the maintenance of records under the New Pension System Scheme of the Central Government which means that the said arrangement will be completed by the following three fund managers only- S.B.I. Pension Fund, U.T.I. Retirement Solution and L.I.C. Pension Fund.
Provision of mandatory rules under the mentioned subject for new thinking, new strategy- For this, the minimum age of the potential subscriber will be 10 years, that is, a person of minimum 10 years of age can start his NPS registration and can contribute for a bright future. When the age of that potential customer will be 60 years, then he will start getting pension through the pension fund managers, but Investment in the account will stop only after the death of that customer.
In case of death (having completed 60 years of age or less than age 60 years), there will be two options for transfer of payment to the account of his nominee-
1- Right to transfer the total investment made by the deceased person to the NPS account of the nominee.
2- Right to transfer the total investment made by the deceased person to the nominee’s bank savings account or post office savings account.
From time to time provision for change and improvement will also be made in this scheme with the help of high level intellectuals, economists and experts.
The target of the topic mentioned in New thinking, New Strategy will be to open more than 100 crore NPS accounts across India.
Statutory Note
This whole plan has been carefully prepared under a new thinking, a new strategy. Even after this, if any kind of error and defect is found in the study and analysis of the subject, then no responsibility of any kind will be of the subject creator, blogger website and people related to this subject.
