Age limit to join National Pension Scheme raised from 60 to 65 years
New Delhi, September 12: Finally some good news came from the Pension Fund Regulatory and Development Authority who announced that the upper limit to join the National Pension Scheme is increased to 65 from 60. According to reliable sources, the Pension Fund Regulatory and Development Authority Chairman Hemant Contractor declared a statement that the pension regulator’s board already approved the decision and it would be notified shortly.
According to the media reports, Hemant Contractor said that “National Pension Scheme is presently open for people between 18 and 60, and our Board has approved raising the age limit to 65. This scheme has the option of continuing and making contributions up to the age of 70.”
Hemant Contractor further said that “Our main aim is to open pensions to those sectors that are without pensions. There as also a notification that only 15-16 per cent of employees in India are covered by pensions because an overwhelming 85 per cent of the workforce is found in the unorganized or informal sector. It is the lowest-cost pension product in the world today.” He added that costs are important because even one per cent difference in cost over 25-30 years, would result in 15-16 per cent difference in the end due to the combining factor.”
The company chairman added that Pension Fund Regulatory and Development Authority asked the Central Board of Direct Taxes (CBDT) to provide a blanket approval for the transfer of superannuation funds to the National Pension Scheme, but still waiting for response from the Central Board of Direct Taxes.
Hemant Contractor recommended that companies should solely take up this matter with the Central Board of Direct Taxes , because the Pension Fund Regulatory and Development Authority is yet to hear from the income tax department. The chairman explained that National Pension Scheme enjoys special privileges on income tax that are not available to any other capital market instrument. The National Pension Scheme appeared as a scheme for income security of senior citizens. The Chairman added that it had witnessed good growth over the last one-two years.