Context: The Pension Fund Regulatory and Development Authority (PFRDA) is preparing to introduce a new version of the National Pension Scheme (NPS) that will enable contributors to retain 50% of their investment in equity funds until they reach the age of 45.
About Pension Fund Regulatory and Development Authority (PFRDA):
- It is a statutory regulatory body set up under PFRDA Act 2013, to promote old age income security and protect the interests of NPS subscribers.
- PFRDA is regulating NPS, subscribed by employees of Govt. of India, State Governments and by employees of private institutions/organizations & unorganized sectors.
- It operates under the jurisdiction of Ministry of Finance in the Government of India.
Organizational Structure:
The Authority consists of a Chairperson and not more than six members, of whom at least three shall be whole-time members, to be appointed by the Central Government.
Schemes managed by PFRDA:
- Atal Pension Yojana (APY): a pension scheme launched by Government of India is focused on the unorganized sector workers. Under the APY, minimum guaranteed pension of Rs. 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will start after attaining the age of 60 years depending on the contributions by the subscribers for their chosen pension amount. The contributions under Atal Pension Yojana are invested as per the investment guidelines prescribed by PFRDA.
- National Pension System (NPS): is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India. It brings an attractive long-term saving avenue to effectively plan your retirement through safe and regulated market-based return. The Scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA). National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.