Now Reading: Corporate NPS can boost retirement corpus, says PFRDA official
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Corporate NPS can boost retirement corpus, says PFRDA official
PFRDA whole-time member Randip Singh Jagpal says Corporate NPS can provide an additional pension layer alongside EPF, not replace it. Speaking at an Outlook Money event, Jagpal stressed that with frequent job…
The Story in Brief
PFRDA whole-time member Randip Singh Jagpal says Corporate NPS can provide an additional pension layer alongside EPF, not replace it. Speaking at an Outlook Money event, Jagpal stressed that with frequent job changes and longer retirements, companies must help employees build adequate savings. He outlined steps for employers: review benefits, offer NPS, explain it simply, and use digital platforms for easy access.
PFRDA has approved four new pension funds, taking the total to 14, as it targets 35-40 crore non-government NPS subscribers in five years from the current 90 lakh. Chairman Sivasubramanian Ramann said digital onboarding and wider use of mutual fund distributors and agents can add 2-3 crore subscribers annually. He noted the NPS conservative scheme has delivered annualised returns of 9.2-9.3% over 15 years.
The Indian Opinion
Some commentators frame the push for Corporate NPS as a threat to EPF. But it is a supplement, not a replacement, as PFRDA itself emphasises. The regulator targets a massive leap from 90 lakh to 35-40 crore non-government subscribers. This hinges on making pension products as easy to access as mutual funds. The real test will be whether digital onboarding and a wider distributor network can actually change savings behaviour among informal-sector workers, not just salaried employees.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
