Money & Banking

Age limit for NPS entry to be raised to 65 years, says pension regulator

K.R.Srivats New Delhi | Updated on January 08, 2018

Pension regulator PFRDA will soon notify the increase in maximum entry age limit for National Pension System (NPS) to 65 years, its Chairman Hemant Contractor has said.

“Our Board has already taken a decision and the entry age limit will go up to 65 from existing 60 years,” Contractor told BusinessLine on the sidelines of a PFRDA conference on NPS for central public sector enterprises (CPSEs) here.

The main purpose of the conference was to inform CPSEs about the benefits and features of NPS and address employees’ queries, Contractor said.

PFRDA Chairman expects several CPSE employees to come on board the NPS platform in the coming days.

“As on date, there is very little participation from CPSE employees in NPS. We expect the participation to increase as more awareness about the benefits are created,” Contractor said. He also said that PFRDA has left it to the CPSEs concerned as to whether their employees need to come through the employer or directly subscribe to NPS.

Based on the recommendation of 3rd Pay Revision Committee, the Department of Public Sector Enterprises notified dispensing with the condition of minimum 15 years of service and superannuation from CPSEs to avail the pension benefit implemented by CPSEs.

Separately, the Government has also amended the Income Tax Act providing for tax free migration of superannuation funds to NPS. This provision is expected to facilitate CPSEs to implement NPS for their employees. The total employee strength in CPSEs stood at 12.91 lakh (excluding contract workers) in 2014-15.

Published on October 09, 2017

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