Employees of a number of states that have opted out of the National Pension System (NPS) will keep earning returns on their corpus, according to the Pension Fund Regulatory and Development Authority (PFRDA). This announcement by the pension regulator came after several states, including Rajasthan, Chhattisgarh, and Himachal Pradesh, had previously opted out of the NPS, leaving state government employees unsure about their corpus held by fund managers. The PFRDA also requested banks and other intermediaries to enroll more private sector employees in the NPS.
Dipak Mohanty, Chairman of the pension authority, assured that the state governments will continue to receive returns on the corpus under NPS, ensuring that there is no disruption. However, he did not provide details on how the regulator plans to address situations where states may rejoin the NPS.
Mohanty highlighted that the NPS offers competitive returns and is an attractive choice for individuals seeking retirement savings. One of the reasons for its appeal is that the regulator allows systematic withdrawal and the retention of the corpus until the age of 75.
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