Wednesday, November 28, 2007

New Pension Scheme

Despite protest from Left parties, the New Pension scheme is set to roll from June 2008 with fund managers UTI Mutual Fund, State Bank of India and LIC having the option to invest up to 15% of the funds in equities.
The Pension Fund Regulatory and Development Authority (PFRDA) appointed National Securities Deposiytoory Ltd., (NSDL) as the Central Recordkeeping Agency (CRA).
Except the three Left ruled States West Bengal, Tripura and Kerala which have opted out of New Pension Scheme, all the other 19 states have agreed for the interim arrangement.
Accordidng to NDSL Chairman, C.B.Bhave, the deepository has been appointed CRA for 10 years. Apart from setting up call centres to provid information to ccount holders,NSDL will issue "Permanent Retirement Account Number(PRAN) on the pattern of PAN card to ech pension account holder, priovide annual statements and act as an operational interface between the PFRDA and the fund managers.
The Govt. employees who joined the service since 1st January 2004 shall be covered under this scheme and they have to contribute 10% of the basic salary to the Pension fund.