India. Maintaining NPS return at over 10 per cent to be examined: PFRDA chief Hemant Contractor
PFRDA Chairman Hemant Contractor today called for examining sustainability of high returns of over 10 per cent to government employee NPS subscribers at a time when interest rates are in decline.
SBI Pension Funds, UTI Retirement Solutions and LIC Pension Fund Ltd are the three government-managed pension funds hired by the Pension Fund Regulatory and Development Authority of India (PFRDA) that offers returns in the range of 10.16-10.52 per cent to central government employees. For the state level, the interest rate falls in the range of 10.16-10.31 per cent.
“On the sustainability of returns, we have been talking to the government because now the interest rates are coming down. So, the returns that we get on debt instruments would come down,” Contractor told reporters here. “Therefore, we do need to look at instruments like life cycle funds in order to broadbase the investment and get better returns. We do need to restructure.”
Read more @Economic Times
