PFRDA launches 2 pension schemes for economically disadvantaged
22 Jul 2010
Pension Fund Regulatory and Development Authority (PFRDA), the apex body set up to regulate and develop the pension sector in the country, has introduced two new schemes - `NPS-Lite', which aims at financial inclusion and `Swavalamban Scheme' which is an add-on product for NPS account holders who meet certain criteria.
NPS-Lite specifically targets the economically disadvantages sections of society and promotes small savings during their productive life.
The scheme will help the economically weaker sections to build a corpus sufficient enough to buy an annuity for their old age, an official release said today.
PFRDA had, earlier, extended New Pension System (NPS) to all citizens of India with effect from 1 May 2009.
The `Swavalamban Scheme,' which grants an incentive of Rs1,000 to all eligible NPS accounts, will be available to all NPS-Lite accountholders as well, provided they meet the prescribed criteria.
The `NPS-Lite' scheme has been designed to ensure least administrative and transactional costs. NPS-Lite works on a "group" model and would be available through "aggregators" appointed by PFRDA.