Plan for universal pension scheme deferred

The pension fund regulator has deferred plans to bring all citizens under the new pension scheme (NPS) by 1 April, for what it said, the constraints imposed by the election code of conduct, a government release said.

New employees of the central government were brought under the NPS with effect from 1 January 2004. The government transferred the accumulated funds along with its matching contribution to the three fund managers appointed by PFRDA for investment management on 1 April 2008.

In August, 2008, the government advised PFRDA to extend the new pension scheme to all citizens. Since considerable preparatory work was involved, PFRDA decided to extend NPS to all citizens from 1 April 2009.

As part of that exercise, PFRDA has already appointed six new fund managers and 23 points of presence for managing NPS contributions pertaining to all citizens, including workers of the unorganised sector. PFRDA had also brought to the notice of the general public the fact of NPS being made available to all citizens through an advertisement released on 28 February 2009.

''However, keeping in view the Model Code of Conduct for Elections, it has not been possible for PFRDA to continue this information campaign and undertake other preparatory activities as originally scheduled. It has, accordingly, been decided to defer the date of the extension of the NPS to other citizens,'' the release said.