New Delhi: Chief Economic Advisor (CEA) V. Anantha Nageswaran said on Tuesday that a deep and well-governed pension pool can contribute to the creation of a Viksit Bharat by supporting growth-oriented investments while ensuring liability-aware returns for subscribers.
Addressing an event organised by Pension Fund Regulatory and Development Authority (PFRDA), he said that pension funds can play a vital role in building infrastructure and supporting India’s Viksit Bharat at 2047 journey.
“The truer measure of a developed society is whether security and dignity in old age are broadly shared,” he said.
He further stated that the funding gap has long plagued Western pension funds and narrowed somewhat as interest rates moved away from the zero-flow environment.
“However, a subtle risk has emerged,” he told the gathering.
Citing gold as an example, the CEA said for a country like India, the yellow metal carries balance of payments consequences that a domestic liability fund should really tackle.
He stressed that chasing higher returns at the cost of pension promises was a risk that pension systems cannot afford.
Meanwhile, PFRDA Chairperson S. Ramann said the authority is set to roll out the NPS Swasthya product in the next two months or so.
Health insurance companies will soon be able to offer top-up health cover to National Pension System (NPS) subscribers via tie-ups with the PFRDA.
The PFRDA board has already approved the product, and the regulator will soon issue a circular detailing its standard operating procedure (SOP). “The pension funds will tie up with the insurance companies for providing top-up health insurance. That is the bundling of NPS Swasthya,” Ramann said on the sidelines of the event.
Last month, PFRDA unveiled a major overhaul of post retirement options under India’s National Pension System (NPS), allowing retirees to take periodic payouts from the withdrawable portion of their corpus. The new framework introduces a drawdown facility that lets subscribers opt for monthly, quarterly,or annual payouts from the lump sum portion retained under NPS.
(IANS)
