The national pension regulator Pension Fund Regulatory and Development Authority (PFRDA) has announced a range of incentives, in a bid to expand pension coverage in the country.
PFRDA announced incentives payable to Points of Presence (POPs), the principal distribution points for the National Pension System (NPS), reported Press Trust of India, citing an official release from the Ministry of Finance.
For every account which continues to contribute a minimum of INR1,000 (US$15.40) in a financial year, the distribution points will receive an incentive of INR50 per account per annum. The move is also aimed at boosting persistency,
In e-NPS services, incentives are hiked from 0.05% (minimum of INR5 and maximum of INR5,000) to 0.10% of the contribution (minimum INR10 and maximum INR 10,000).
Earlier this month, PFRDA Chairman Hemant G Contractor emphasised the need to increase pension coverage. He said that less than 2% of the eligible population is covered under Atal Pension Yojana (APY), a government-backed pension scheme in India targeted at the unorganised sector that was introduced in 2015.
APY is a self-contributory savings pension scheme with a guaranteed monthly pension of INR1,000 to INR5,000, with a very low contribution by the subscriber.