Pension sector needs tax incentives: PFRDA chief - Moneylife

Pension sector needs tax incentives: PFRDA chief - Moneylife


The PFRDA Chairman, by saying that “only
11 to 12 percent of India's working population in the organised sector were
satisfactorily covered by pension schemes, mostly by government sector.”, is
repeating the government’s arguments for introduction of NPS first for ‘future
employees’ and then extending it to those in the unorganised sector. The main
reason for discontinuing Defined Benefit Pension Scheme was increasing
financial burden for the government. If NPS cannot become self-supporting, it
can as well be scrapped and government should consider reverting to the pre-NPS
situation when employees in the organised sector was covered by regular pension
schemes and those outside were supported through other social security systems
including EPF. The present NPS corpus could be transferred to EPFO for
managing. PFRDA cannot expect government to subsidise NPS for all time to come.
VII Pay Commission in Chapter 10.3 of its report has listed glaring
deficiencies in the concept and administration of NPS. Remember, GOI had
consciously excluded NPS from the ToRs of VI and VII CPCs.

 M G Warrier


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