The NPS Cor­po­rate Model

Consumer Voice - - Pension -

In­tro­duced in De­cem­ber 2011, this pro­vides a plat­form for cor­po­rate en­ti­ties to ex­tend old-age so­cialse­cu­rity benefits to their em­ploy­ees through flex­i­ble con­tri­bu­tions. This model can co­ex­ist with other re­tire­ment pen­sion schemes like Em­ploy­ees’ Prov­i­dent Fund (EPF) and Su­per­an­nu­a­tion Fund (SAF). Un­der this model, a cor­po­rate group/com­pany (em­ployer) has the flex­i­bil­ity to se­lect the point of pres­ence (com­mer­cial banks and In­dia Post), pen­sion funds (PFs) as well as in­vest­ment choice (‘ac­tive choice’ in­vest­ments in gov­ern­ment se­cu­ri­ties, non- gov­ern­ment se­cu­ri­ties or eq­uity in­stru­ments; or ‘auto choice’ life-cy­cle funds (pre­de­ter­mined port­fo­lios). The cor­po­rate en­tity can also leave such choices to em­ploy­ees.

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