Labour Ministry on Global pension report
On December 9, 2021, Ministry of Labour and Employment told the Rajya Sabha that; a Global Pension Index that placed pension system of India towards bottom of the list was not prepared on the basis of reliable comparable international data.
Key Facts
- The Global Pension Index Report was published in 2021 and has ranked India at 40th place, out of 43 countries for its pension system.
- Report was published by Mercer, a management consulting firm.
- Index is prepared on the basis of certain criteria of sustainability, adequacy, and integrity.
- Index placed India in the same category of Japan, South Korea and a few other countries.
National Pension System Trust (NPS Trust)
NPS Trust is a specialised division of Pension Fund Regulatory and Development Authority in India. It works under the parent head of Ministry of Finance. National Pension System (NPS) is a voluntary defined contribution pension system. It is an EEE (Exempt-Exempt-Exempt) instrument, in which entire corpus escapes tax at maturity. Under this system, entire pension withdrawal amount is tax-free. All the citizens of India including workers of unorganized sector can avail the benefits of NPS system on a voluntary basis. Reserve Bank of India (RBI) also allowed the Non-Resident Indians (NRI) to subscribe to NPS on October 29, 2015. NPS is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA).
Pension Fund Regulatory and Development Authority (PFRDA)
PFRDA is the regulatory body, working under the parent head of Ministry of Finance. It supervises and regulate pension in India. It comprises of a chairperson and not more than six members. Out of 6 members, at least three shall be whole-time members and to be appointed by Central Government.
Related Posts
Month: Current Affairs - December, 2021