Global Pension Report And Labour Ministry

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11 December 2021 Current Affairs:On December 9, The Ministry of Labour and Employment informed Rajya Sabha that a Global Pension Index that set the pension system of India towards the bottom of the list was not organized based on reliable, comparative international data.

Highlights

  • The Global Pension Index Report was posted in 2021 and has classified India at 40th place out of 43 countries for its pension system.
  • Mercer, a management consulting company, issued the report.
  • The index is designed based on sustainability, adequacy, and integrity criteria.
  • The index put India in the same category as Japan, South Korea and a few other countries.

National Pension System Trust 

  • NPS Trust is a technical division of India’s Pension Fund Regulatory and Development Authority. 
  • Operating under the head of the Ministry of Finance, National Pension System (NPS) is a voluntary limited contribution pension system. 
  • It is an EEE (Exempt-Exempt-Exempt) tool in which the entire corpus evades tax at maturity. 
  • Under this system, the entire pension withdrawal amount is tax-free.
  • All the citizens of India, including workers of the unorganized sector, can voluntarily avail themselves of the NPS system’s benefits.
  •  Reserve Bank of India (RBI) also allowed the Non-Resident Indians (NRI) to subscribe to NPS on October 29, 2015. 
  • NPS is issued and controlled by Pension Fund Regulatory and Development Authority (PFRDA).

Pension Fund Regulatory and Development Authority (PFRDA)

  • PFRDA is the regulatory body operating under the head of the Ministry of Finance.
  •  It supervises and regulates pensions in India and comprises a chairperson and not more than six members. 
  • At least three shall be whole-time and to be appointed by the Central Government.

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