FM backs pension scheme for unorganised sector
Updated: Aug 27, 2014 12:22:18pm
New Delhi, Aug 27 (KNN) Highlighting the importance of NPS Swavalamban scheme for people from the unorganised sector, Union Finance Minister Arun Jaitley said that the segment requires special support, urging the Pension Fund Regulatory and Development Authority (PFRDA) to promote the scheme vigorously across the country.
The Finance Minister was speaking at the launch of a new user friendly and informative website of PFRDA at the First Pension Conclave held here yesterday.
Expressing confidence about the role of PFRDA in promoting Swavalamban Scheme, he said the scheme signifies an element of self-pride through participation of the less fortunate and excluded segments.
The Finance Minister expressed confidence that the regulatory authority will formulate regulations for sound and sustainable growth of the pension system with due regard to the interest of the subscribers including setting-up an efficient and responsive grievance redressal mechanism. He exhorted the industry to come up with more and more new products which could compete with each other with benefit accruing to the pension subscribers.
Jaitley said that to build a consensus on issues such as pension across the political spectrum is not easy.
He said that PFRDA legislation has however gone through a process of guided development and adequate sensitisation. He highlighted the important aspects and implications of pension reforms, a key area of financial sector and economic reforms in the country.
Further, he said that an amendment to the Insurance Act to enhance the limit of FDI to 49 per cent will also mean similar provision for the pension sector. The increase in the FDI limit to 49 per cent will permit inflow of foreign capital, investment expertise and new technology.
Jaitley also released the First Annual Report of PFRDA for 2013-14 post notification of the PFRDA Act. Releasing the Report, the Finance Minister hoped that the regulatory authority would provide a conducive and enabling environment for expansion in pension industry with a larger number of players.
He said, considering that pension pay-outs, particularly unfunded and uncertain are to be borne by the Public exchequer, the pension reforms will mitigate this burden releasing resources for better deployment and utilisation in other social sectors. He highlighted the need to build up corpus of funded resources to eventually act as the source for pension pay outs in future, and also as a source for financing critical sectors as infrastructure and also capital market. (KNN/SD)
The Finance Minister was speaking at the launch of a new user friendly and informative website of PFRDA at the First Pension Conclave held here yesterday.
Expressing confidence about the role of PFRDA in promoting Swavalamban Scheme, he said the scheme signifies an element of self-pride through participation of the less fortunate and excluded segments.
The Finance Minister expressed confidence that the regulatory authority will formulate regulations for sound and sustainable growth of the pension system with due regard to the interest of the subscribers including setting-up an efficient and responsive grievance redressal mechanism. He exhorted the industry to come up with more and more new products which could compete with each other with benefit accruing to the pension subscribers.
Jaitley said that to build a consensus on issues such as pension across the political spectrum is not easy.
He said that PFRDA legislation has however gone through a process of guided development and adequate sensitisation. He highlighted the important aspects and implications of pension reforms, a key area of financial sector and economic reforms in the country.
Further, he said that an amendment to the Insurance Act to enhance the limit of FDI to 49 per cent will also mean similar provision for the pension sector. The increase in the FDI limit to 49 per cent will permit inflow of foreign capital, investment expertise and new technology.
Jaitley also released the First Annual Report of PFRDA for 2013-14 post notification of the PFRDA Act. Releasing the Report, the Finance Minister hoped that the regulatory authority would provide a conducive and enabling environment for expansion in pension industry with a larger number of players.
He said, considering that pension pay-outs, particularly unfunded and uncertain are to be borne by the Public exchequer, the pension reforms will mitigate this burden releasing resources for better deployment and utilisation in other social sectors. He highlighted the need to build up corpus of funded resources to eventually act as the source for pension pay outs in future, and also as a source for financing critical sectors as infrastructure and also capital market. (KNN/SD)
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