Govt has amended I-T Act providing for tax free migration of superannuation funds to NPS.
New Delhi: Subscribers of National Pension System (NPS) increased by 27 per cent to 1.78 crore at the end of last month, pension fund regulator PFRDA said on Tuesday. The asset under management (AUM) under NPS stood at Rs
2.06 lakh crore at September-end.
"The growth in subscribers and the AUM jump stood at 27 per cent and 47 per cent, respectively," said Badri S Bhandari, Whole Time Member, Pension Fund Regulatory and Development Authority (PFRDA) at an event here.
Speaking at a conference on NPS for Central Public Sector Enterprises (CPSEs), Bhandari enumerated the benefits of NPS and highlighted the returns generated by pension funds since inception, which has been over 10 per cent.
On the recommendation of the 3rd Pay Revision Committee, the department of PSE has dispensed with the condition of minimum 15 years of service and superannuation from CPSEs to avail the pension benefit implemented by CPSEs.
The government has also amended the Income Tax Act providing for tax free migration of superannuation funds to NPS.
"This provision will facilitate the CPSEs to implement NPS for their employees," PFRDA said in a statement. PFRDA Chairman Hemant Contractor said individuals can subscribe to NPS up to the age of 65 years.
They can defer the purchase of annuity to three more years post retirement and defer lump-sum withdrawal in phased manner over a period of 10 years.
NPS is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers make optimum decisions regarding their future through systematic savings during their working life.