New Delhi, July 02: Seized of the challenges faced by the PFRDA, the Economic Survey on Thursday said the success of the pension reforms will help in facilitating the flow of
long-term savings for investment and fund for infrastructure development.
It would also help the government to fund its pension
liabilities, said the Survey tabled in Parliament.
"PFRDA faces the challenge of covering the unorganised
sector under the New Pension Scheme (NPS), empowering the
subscribers to take appropriate investment decisions based on
their risk and return profile, provide safety and optimum
returns, and to improve financial literacy levels," it said.
The pension sector reforms were initiated in India to
establish a solid and sustainable social security arrangement
in the country against the backdrop that only about 12-13 per
cent of the total workforce was covered by any formal social
security system, it said.
The NPS, it said, which was introduced by the
government in January 1, 2004 for new entrants to the central
government service, except armed forces, was to be extended
gradually to the remaining 87 per cent of the total workforce
on the voluntary basis.
The government introduced the NPS for all citizens
from May 1, 2009.
Bureau Report
First Published: Thursday, July 02, 2009, 17:35