The
long-pending Pension Bill, a key economic legislation assuring minimum
returns to subscribers, was today approved by the Lok Sabha, with the
government saying it is based on the principle that "you save while you
earn".
The Pension Fund Regulatory and Development Authority (PFRDA)
Bill, 2011, provides for market based returns and wide coverage based on
several investment options in the pension sector with an aim to
building confidence in the subscribers.
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It will have provision for withdrawals for limited purposes from Tier-I pension account, an incentive for subscribers to join the New Pension Scheme (NPS).
Replying to a brief debate, Finance Minister P Chidambaram said the government has accepted most of the recommendations of the Standing Committee.
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The NPS, beneficial for employees in the long run, is based on the principle that "you save while you earn" especially for retirement period and is mainly for those who have a regular income, he said.
The corpus of the NPS having 52.83 lakh subscribers (including those of 26 state governments) was about Rs 35,000 crore.
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The bill also seeks to grant statutory status to the Pension Fund Regulatory and Development Authority.
"....Rs 35,000 crore should not be used by unstatutory authority...All this Bill does is make unstatutory authority (into) a statutory authority," Chidambarm said, adding the statutory authority will have powers to penalise.
The bill would also provide