With the corporate sector and folks displaying higher interest in the national pension technique (NPS), the NPS assets below management will most likely rise 30% on year to Rs 7.5 lakh crore by finish-FY22, the Pension Fund Regulatory and Development Authority (PFRDA) chairman Supratim Bandyopadhyay mentioned on Friday.
“Total NPS corpus was at Rs 6.67 lakh crore as on September 25, 2021, up from Rs 5.78 lakh crore as on March 31. Our internal assessment is that by the year end, we will reach Rs 7.5 lakh crore,” Bandyopadhyay mentioned.
Private person enrolments (excluding Atal Pension Yojana) grew 35% on year to 18.28 lakh as on September 25, 2021, even though corporate sector subscribers has shown 20% development to 12.59 lakh through the period. The Central government employee subscribers grew 4.4% on year 22.24 lakh as on September 25, 2021, even though state governments subscribers grew 10% to 53.79 lakh through the period. Total quantity of subscribers as of September 25, 2021, was 4.6 crore, up 24% from a year ago and 8.5% given that March 31, 2021.
To foster higher competitors in fund management, PFRDA has not too long ago offered its nod to two new entrants into NPS fund management — Tata Asset Management and Max Life Insurance. Axis Mutual Fund is also in the approach of joining as a fund manager, Bandyopadhyay mentioned.
Currently, there are seven fund managers, namely, HDFC Pension Management, ICICI Prudential Pension Funds Management Company, Kotak Mahindra Pension Fund, LIC Pension Fund, SBI Pension Funds, UTI Retirement Solutions and Aditya Birla Sun Life Pension Management.
In June, the PFRDA has permitted engagement of folks who are working as small business correspondents or agents inside their current small business structure for facilitating the distribution of pension schemes.
Bandyopadhyay mentioned person distributors would play a crucial part expansion of NPS amongst the masses. The regulator is also examining if the costs paid to distributors could be enhanced from the present price of .25% of the contribution by a subscriber.
With longevity of life and working life going effectively beyond 60 years, the regulator has enhanced the entry age for NPS to 70 from 65 and exit age from 70 to 75 years, in the all citizen and corporate schemes.