English_Master March 22, 2016 No Comments
PENSION FUNDS — PROMISE OF THE NEW SYSTEM At present any arrangement that builds up assets for old age income is termed as ‘pension’. Globally, the regulations of some major pension arrangements do not provide for annuitisation. Even the PFRDA Bill, 2005, in Chapter III, ‘Extent and Application’, has specified that when enacted, the PFRDA Act will apply to the New Pension System (NPS) and any other pension scheme not regulated by any other enactment and will not, inter alia, apply to schemes or funds under Em­ployee Provident Fund and Miscellaneous Provisions Act, Coal Mines PF and Misc Provisions Act, Seamens PF Act, Assam Tea Plantations Provident Fund and Pension Fund Scheme Act and J & K EPF Act. In the present Indian social and economic environment, providing for old age income, till a few years ago, was not a concern for the average Indian and consequently less than ten per cent of those above 60 currently have the benefit of old age income. Indian scenario It may be useful here to give an overview of pension arrangements available in India before going into their cur­rent status and issues. Though the pension arrangement for government em­ployees recruited before January 1, 2004, is based on intergenerational transfers (Pay-as-you-go) and is...
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