In July India's pension fund to start equity investments

NEW DELHI: Starting in July, India's state-run pension and social security fund will invest about $800 million in equities in the current fiscal year, labour minister Bandaru Dattatreya said, in a long-awaited move that may help finance an ambitious privatization programme.

The more than $100 billion Employees' Provident Fund Organisation (EPFO) intends to place an initial 1 per cent of its investments in exchange traded funds, increasing to 5 per cent of the annual total in equity products by March 31.

http://timesofindia.indiatimes.com/business/india-business/Indias-pension-fund-to-start-equity-investments-in-July/articleshow/47811959.cms

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PARRIKAR SAYS, GOOD NEWS ON ONE RANK, ONE PENSION SOON

Defence minister Manohar Parrikar on Thursday said that Army can expect ‘good news soon’ on the issue of one rank, one pension (OROP). In the city for cantonment board meeting, the minister said: “Our commitment to implement the OROP remains intact. I cleared the file as soon as it came to my notice.”

When asked whether the issue could be put before Parliament in the monsoon session starting July 21, the minister said that it was difficult to give a time frame, as many ministries and departments are involved in its implementation.

“Since issues like OROP involve more than one ministry, there cannot be any time-frame for its implementation. I do not put myself in restrictive time-frame. It will be implemented soon, but how soon, I cannot tell. My department followed the time-frame despite difficulties,” he said.

Ex-servicemen have been protesting since June 14 to press for the implementation of OROP. At present, pension of retired army personnel is based on the pay commission recommendations at the time of their retirement. This leads to difference in pension for officers of the same rank who retire on different dates.

With OROP, those who retired earlier will draw the same pension as officers and jawans of the same rank who are retiring now. They would also be entitled to a year’s back pension at the new rate, which would be a windfall for pensioners.

The system will benefit 25 lakh ex-servicemen, and is expected to cost the government around Rs 8,500 crore.

http://www.theindianpanorama.com/india/2015/good-news-on-one-rank-one-pension-soon-says-parrikar-43948.html

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PFRDA asked subscribers of NPS Swavalamban scheme to join the Atal pension yojana (APY)

Pension fund regulator PFRDA has asked subscribers of NPS Swavalamban scheme to join the Atal pension yojana (APY), which offers guaranteed minimum monthly pension of Rs 1,000-5,000 to the subscriber after 60 years.

NPS Swabhalamban scheme has significant amount of subscribers and if all them opt for newly launched Atal pension yojana, it will help PFRDA reach the 2-crore subscriber target for this year. NPS Lite and Swavalamban schemes combined have about 45 lakh subscribers with assets under management of over Rs 1,700 crore.

Both Swavalamban and APY schemes are quite similar in certain aspects. The NPS-Swavalamban model is designed to ensure ultra-low administrative and transactional costs, so as to make small investments viable.

Like the recently-launched Atal pension yojana, in Swavalamban also government contributes Rs 1000 per year to each account for five years. A Swavalamban account opened in the period 2013-2014 to 2016-2017 for example get the Swavalamban benefit up to 2016-17.

In the APY, the government would co-contribute 50 per cent of the total contribution or Rs 1000 per annum, whichever is lower, to eligible subscribers. Government co-contribution is available for five years, i.e. from 2015-16 to 2019-20 for the subscribers who join the scheme during the period from 1st June, 2015 to 31st December, 2015 and who are not covered by any statutory social security schemes and are not income tax payers.

"All subscribers of Swavalamban scheme between 18-40 years of age can opt to migrate to Atal Pension Yojana through their bank account," PFRDA said in a communique. "(Such) subscribers between 18 to 40 years of age may approach their bank branches to submit the APY application along with PRAN (permanent retirement account number) card for migration to Atal pension yojana.

The subscribers’ PRAN issued under Swavalamban scheme would continue to be retained in APY and new PRAN will not be issued," the pension fund regulator said. Swavalamban scheme subscribers without bank account will have to open a bank account and simultaneously submit the request for migration from Swavalamban to the Atal pension yojana to the bank, it added.

http://www.mydigitalfc.com/news/pfrda-asks-nps-swavalamban-subscribers-join-pension-yojana-953

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