New Pension System can create losses?
Shocking many investors, PFRDA chief said
no guarantee on returns was desirable for NPS.
Even as insurance regulator IRDA insists that there should be guarantee on pension products sold by life insurers, Pension Fund Regulatory & Development Authority (PFRDA) chairman Yogesh Agarwal has said no such guarantee was desirable for products offered by fund managers under New Pension Scheme (NPS).
“We at PFRDA don’t favour any guarantee for our products. The pension fund managers regulated by PFRDA are not giving any minimum guarantee on returns in their products.
It is despite the fact that we are offering an average return of 12 per cent on our pension products,” he said.
It is despite the fact that we are offering an average return of 12 per cent on our pension products,” he said.
Agarwal was in the city to launch online system unveiled by ICICI Securities to sell NPS products.
The PFRDA chief said the regulator was waiting for the report by the GN Vajpayee committee to undertake the overhaul of the 18-month-old NPS for the unorganised sector which is yet to gather steam. “The committee has almost finished its home work. It is likely to submit its report before us by next month. On receiving it, the report would be put up on the website for public comment. We will try to implement the recommendation of the report in the minimum possible time,” he said.
Source: The Financial Express
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