States out of NPS: Corpus will keep getting returns

New Delhi, Jan 20, 2024

Pension regulator said on Friday that employees of some of the Opposition ruled states, which have opted out of the National Pension System (NPS), will continue to earn returns on the corpus that is under the contributory pension model. The regulator also nudged banks and other intermediaries to enroll more subscribers from the private sector.

"The state government will continue to get the returns on the corpus under NPS, so there is no discontinuity," Pension Fund Regulatory and Development Authority chairman Dipak Mohanty said.

States such as Rajasthan, Chhattisgarh and Himachal Pradesh had opted out of NPS, leaving state government employees in a limbo as they could not lay their hands on the corpus lying with fund managers. Mohanty, however, did not comment on how the regulator intends to deal with cases where states may rejoin NPS.

He said the scheme has given "very competitive returns" and is an attractive option for those looking at retirement savings, especially after the regulator allowed systematic withdrawal and retain the corpus up to 75 years.

[The Times of India]