PFRDA mulling to bring NPS scheme with assured returns by June next year

Implementation old pension scheme has beome a political issue in many states more so from the prism of elections. States have also been demanding Centre to return the amount deposited in NPS. In the midst of all this India’s pension fund regulator is planning to launch a scheme that could give account holders assured returns.

What will be the contours of the scheme and how much returns it could offer? Zee Business’ Brajesh Kumar reports!

Pension Fund Regulatory and Development Authority (PFRDA) is planning to bring a scheme that would offer you assured returns. 

- PFRDA could bring in minimum return assured scheme.

- It could bring the scheme by June next year.

- The demand for bringing old pension scheme in the absense of assured returns.

- Assured returns of 4-5 returns from pension fund over the 10-year period.

- Additional returns will also go into the accounts of the subscriber.  

- However, the management fee for the scheme will likely be high.   

- Currently the fee is 0.09 per cent while the fee on assured returns are 0.25 per cent. 

- Currently returns on NPS are market linked and not assured.

- More flexibility to fund manager for higher returns.

- The minimum contribution amount could be Rs 5000 per year. 

- People below 50 years could only participate in the scheme.

- For government mployees assured returns to be 10 per cent

- In the span of 13 years, average returns has been 10 per cent 

- Assured scheme could come for non-government employees.

- After ntifications from Centre and states, the government employees will come into the fold.