The Hindu Business Line : NSDL to handle pension records for Govt staff

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NSDL to handle pension records for Govt staff

Our Bureau

Mumbai, Nov. 27

National Securities Depository Ltd (NSDL) will keep the pension records for Central Government employees under the New Pension System, which was introduced by the Union Government for its new recruits (except the Armed Forces) w.e.f January 1, 2004. The agency signed an agreement on November 26 with Pension Fund Regulatory and Development Authority to this effect, said a NSDL release .

Employees would be identified with a unique number and accretions will be recognised against that number thus making transfer of account details across jobs and geographical locations easier.

NSDL is expected to commence operations for the eligible Central Government employees from June 1, 2008. This facility is also open for State Governments and Union Territory employees.

NSDL has been appointed as the record keeping agency for a period of 10 years for an annual fee of Rs 10 lakh. Under the agreement, NSDL shall be charging a volume driven and highly competitive fee for rendering the service.

The annual maintenance and transaction charges payable per subscriber will be Rs 350 and Rs 10 respectively till the number of accounts reaches 10 lakh; after the limit is reached, the charges will be Rs 280 and Rs 6 and when it reaches 30 lakh, the fee charged would be Rs 250 and Rs 4 respectively. The Central Government has decided that it will bear these costs.

At the initial stages of the scheme the subscriber shall have the option of having their pension contributions either invested fully in government bonds and securities or in accordance with the investment guidelines for non-government provident funds issued by Government of India.

PFRDA has appointed State Bank of India, UTI Asset Management Company and Life Insurance Corporation as pension fund sponsors under NPS, through a competitive bidding process.

The NPS corpus of Central Government employees will be distributed amongst the above three pension funds based on the initial investment management fee and transaction based charges.

The appointment of the pension fund managers shall be for a period of three years.

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