New Pension Scheme from 1st May,2009-Not ePayments friendly.TOPIC OF THE WEEK

 

 

 New Pension Scheme from 1st May,2009-Not ePayments friendly.

All citizens of the country will be able to avail of pension facility from tomorrow, with the interim pension regulator Pension Fund Regulatory and Development Authority (PFRDA) confirming the scheduled launch of the mega pension plan in a statement today.
"The necessary infrastructure for the rollout of New Pension System (NPS) is now ready and it will be available to all citizens of India from May 1, 2009," PFRDA said.

 Tier-I of NPS constituting non-withdrawable pension account will become operational from tomorrow and Tier-II (withdrawable account) of the NPS account will become operational in about six months.

This is a big step towards financial security, in the twilight years. The Offer Document can be accessed at 

http://pfrda.org.in/writereaddata/linkimages/Offer%20Document957798914.pdf

The offer document is comprehensive, user-friendly and all the participants should stabilize in the next six months. To access the Scheme, PFRDA has appointed 22 Points Of Presence(POP’S), whose network i.e Service Points, will support this scheme. This 22 POP’s are mainly Banks and other financial intermediaries.

Bank of India is the trustee Bank, and detailed Service Level Agreement, between PFRDA and Bank of India is in place.

The contributions will be accepted in Cash/Pay-Order and Demand Draft, and also through ECS. Out Station Cheques will not be accepted.

The TAT for the first contribution to be credited is 15 days,and subsequent contributions is 7 days.

 However, it is surprising to note that PFRDA, has not explored the option of receipt of the contributions thru ePayments mode, especially NEFT.  Maybe, the Consultants have not briefed PFRDA, the benefits of NEFT.

 

As the scheme is just rolled out, PFRDA should also welcome contributions through NEFT. This will increase the comfort level for the subscribers, as well as reduce the TAT for the credit to the respective pension accounts.   

 

With a professional central record-keeping agency in place, National Pension Scheme, will be preferred choice for private sector.  The IT industry has already a preliminary meeting with PFRDA, to finalize the modalities. In fact, it would be a good idea, to insist a NPS Account, at the time of match-making!!

Trust PFRDA, will initiate steps to receive contributions through NEFT also.