Even though the New Pension Scheme (NPS) has not generated much interest in the informal sector,the countrys largest bank,State Bank of India (SBI),has approached the pension regulator to manage the retirement money of its employees.
SBI has approached us and we will be happy to manage their pension money. However,we have to seek our boards approval for it. We will be doing that and things should get finalised within a month, said D Swarup,chairman,Pension Fund Regulatory and Development Authority (PFRDA).
Currently,SBI employees contribute 10 per cent of their basic salary to a private trust every month that manages their pension account.
Meanwhile,the subscriptions for the NPS have touched the four-digit mark. Although the NPS boasts of the lowest fund management charges,its merits have been eclipsed by lack of awareness and a robust distribution system.
Running into third month of its operation,the scheme has managed to attract only 1,100 subscribers till date.
To increase its popularity,the regulator plans to launch a media campaign after the budget. The Union Budget has cleared tax issues,but people are still not aware of it. We plan to launch media campaign to educate and inform people in the informal sector and have received Rs 10 crore as budgetary support from the government for it, said Swarup.
The New Pension System has two forms: one that was launched for the Central and state government employees in January 2004 and the other for the informal sector which was launched on the May Day this year. The pension money of both the funds is managed by different sets of fund managers.