Increased Coverage of Employees Under NATIONAL PENSION SYSTEM – Rajya Sabha

Increased Coverage of Employees Under NATIONAL PENSION SYSTEM – Rajya Sabha

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

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RAJYA SABHA
UN STARRED QUESTION NO. 224
TO BE ANSWERED ON FEBRUARY 04, 2020/ MAGHA 15, 1941 (SAKA)
INCREASED COVERAGE OF EMPLOYEES UNDER NATIONAL PENSION SYSTEM

224. Dr. T. Subbarami Reddy

Will the Minister of FINANCE be pleased to state:
(a) whether it is a fact that National Pension System (NPS) is a less preferred saving option among employees in the private sector;
(b) the number of companies registered and the number of employees covered under NPS as on 1st of January, 2020;
(c) whether any campaign or strategy has been worked out by Pension Fund Regulatory Development Authority to approach companies for increased coverage of employees under NPS; and
(d) the number of employees or subscribers who are expected to be added for pension by the end of the financial year, the details thereof?

ANSWER

The Minister of State (Finance)
(Shri Anurag Singh Thakur)

(a) & (b) As per information received from the Pension Fund Regulatory and Development Authority (PFRDA), the National Pension System (NPS) was opened up for private sector subscribers in the year 2009 on voluntary basis. Since then, till 18.01.2020, a total of 20.35 lakh subscribers have enrolled under NPS in the private sector (All Citizen Model and Corporate Model). As on 01.01.2020, 7,063 (Seven thousand and sixty three) corporate and 9,18,300 (Nine lakh eighteen thousand and three hundred) subscribers have registered and enrolled under NPS respectively.

(c) In its endeavour to promote NPS among the private sector employees, PFRDA, periodically, conducts NPS workshops/conferences at various locations across the country in coordination with various trade bodies and organizations such as FICCI, Willis Tower Watson, Mercer, etc. wherein corporates are invited for such Seminars/Conferences. PFRDA also engages with corporates which have already implemented NPS for their employees and conducts awareness sessions/seminars/interactions with their employees. Further, the NPS distribution channels like point of presence, and retirement advisers are being regularly followed-up/guided/encouraged for increasing the coverage of NPS in the voluntary non-government segment. Awareness about NPS is also being promoted through media activities, including digital and social media on a regular basis.

(d) As per PFRDA, under the private sector NPS (All Citizen Model and Corporate Model), for the current FY 2019-20, 3.49 lakh subscribers have already enrolled under NPS as on 27.01.2020, and it is expected to increase further by the financial year end 2019-20.
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Source: RAJYA SABHA