Need to develop India into an insured society: Shri Arun Jaitley

4th Pension Conference on Implementation of National Pension System held in New Delhi

The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley today said that there is now a great need to evolve India into an insured society. Speaking at the Fourth Annual Conference on Pension organized by the Pension Fund Regulatory and Development Authority (PFRDA) here today, the Finance Minister emphasized the need for providing for old age income security and pension facility to the citizens in response to the evolving demographic profile, changing socio-economic structure and limitations on the fiscal resources. He added that the dependency of senior citizens is a grave challenge for the society and it can be met with evolution of concept of pension and its expansion.

On the occasion, the Finance Minister, Shri Jaitley inaugurated the PFRDA’s website on financial literacy and pension planning- ‘Pension Sanchay’ ( www.pensionsanchay.org.in ). He also released a report titled- ‘Security for Seniors- Opportunities and Challenges for creating an Inclusive and Sustainable Pension System in India” prepared by PFRDA in association with CRISIL.

The Theme of the Conference was ‘Creating an Inclusive and Sustainable Pension System in India: Opportunities and Challenges. Deliberations were held during two technical sessions- (i) Channelizing savings for old age income security and (ii) Pension Payouts: The Road Ahead. The top seven performing APY-SPs (Banks) were awarded for their contribution in bringing subscribers under the social security net of APY under the ‘Makers of Excelence campaign.

Chairman, PFRDA, Shri Hemant Contractor, in his Key Note Address said it is PFRDA’s endeavour to extend the pension cover to all those who do not have it. He informed the gathering that PFRDA is considering an auto enrolment system under National Pension System (NPS), with an element of soft compulsion, in which all the employees working in government identified sectors/industries in unorganized sector would be automatically covered unless they choose to opt out. He further assured that PFRDA will ensure to take all steps to increase the outreach of NPS and Atal Pension Yojana (APY) to meet the mandate under PFRDA Act.

Auto-enrolment under National Pension System proposed to extend pension coverage with opt out mechanism and expanded outreach. Regulatory action contemplated includes consideration of an auto enrolment arrangement within the National Pension System to create soft compulsion for employees in government identified sectors and parts of the unorganised sector, operable through an opt out design, while the regulator will increase outreach of the National Pension System and Atal Pension Yojana and promote financial literacy and subscriber mobilisation.