The Pension Fund Regulatory and Development Authority (PFRDA) has raised upper age limit for joining the National Pension Scheme (NPS) to 65 years, from the current 60.
What is NPS?
- The National Pension System (NPS) is a voluntary defined contribution pension system administered and regulated by the Pension Fund Regulatory and Development Authority (PFRDA), created by an Act of the Parliament of India.
- The NPS started with the decision of the Government of India to stop defined benefit pensions for all its employees who joined after 1 January 2004.
- While the scheme was initially designed for government employees only, it was opened up for all citizens of India in 2009. NPS is an attempt by the government to create a pensioned society in India. In its overall structure NPS is closer to 401(k) plans of the United States.
- The contributory pension system was notified by the Government of India on 22 December 2003, now named the National Pension System (NPS) with effect from 1 January 2004. The NPS was subsequently extended to all citizens of the country with effect from 1 May 2009, including self-employed professionals and others in the unorganized sector on a voluntary basis.
What is Pension Fund Regulatory and Development Authority?
- The Pension Fund Regulatory and Development Authority (PFRDA) is a pension regulator which was established by Government of India on August 23, 2003. PFRDA is authorized by Ministry of Finance, Department of Financial Services. PFRDA promotes old age income security by establishing, developing and regulating pension funds and protects the interests of subscribers to schemes of pension funds and related matters.
- The Authority consists of a Chairperson and not more than five members, of whom at least three shall be whole-time members, to be appointed by the Central Government.
Current members
- Hemant Contractor, Chairman
- Dr. B.S.Bhandari, Whole-Time Member(Economics)
- Sh. Pradeep Chaddah,Whole-Time Member(Law)
- Sh. Suchindra Misra, Part-Time Member
- Ms. Annie George Mathew, Part-Time Member
- Ms. Vandana Sharma, Part-Time Member
