PFRDA Hosts Meeting in Pune to Promote National Pension System in Corporates

To promote the National Pension System (NPS) among companies, the Pension Fund Regulatory and Development Authority (PFRDA) organized a meeting in Pune, bringing together Chief Human Resource Officers from 20 local companies. This round table aimed to discuss the benefits and expansion of the NPS in the corporate sector.

Introduced in 2004 for new central government employees, the NPS later extended to all Indian citizens from May 2009, including corporate workers. Additionally, the Atal Pension Yojana, started in 2015, focuses on workers in the unorganised sector. As of April 2024, these schemes have attracted over 7.38 crore subscribers and manage assets worth Rs. 11.80 lakh crore, with the corporate sector alone holding assets over Rs. 2.29 lakh crore.

The meeting’s goal was to educate and encourage companies about the advantages of integrating NPS into their employee benefits, highlighting tax incentives and promoting financial wellness. As part of a broader government plan, the initiative seeks to build a society with sufficient pension coverage by 2047. Presently, 16,060 companies are enrolled in NPS nationwide, with 876 from Pune.

Deepak Mohanty, Chairman of PFRDA, spoke about the importance of adequate pension plans in light of an aging population and longer life expectancies. He noted the necessity for multiple social security systems and praised the efficiency and benefits of the NPS.

Arvind Laddha from Mercer India and other speakers also emphasized the importance of planning for retirement, discussing the NPS’s features, benefits, and tax advantages. The meeting included discussions on practical steps for companies to adopt NPS and how to address implementation challenges.