Finance Minister Chidambaram has given an attractive definition of the long-pending Pension Bill passed by the Lok Sabha. He defines it as “save while you earn”. The idea behind passing the bill is that the subscribers should be assured of market based returns on their investment. This also ensures their financial viability during the period of retirement. It offers several investment options for the subscribers and the returns depend on the risk they are prepared to take. It will be reminded that the Finance Ministry had constituted a Standing Committee to make recommendations on the Pension Bill and it has accepted most of the recommendations that were made. People of all states are free to join the NPS and draw benefits from its provisions. The corpus of the NPS having 52.83 lakh subscribers (including those of 26 State Governments) was about Rs 35,000 crore. An important aspect of the bill is that it seeks to grant statutory status to the Pension Fund Regulatory and Development Authority. The Bill goes a long way in improving the position of Government employees and others also and as such is a welcome step. J&K launched New Pension System (NPS) and we hope the State Government also implements in letter and spirit to make the scheme a success in State.
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