Global Pension Report And Labour Ministry
Please Subscribe and Get Daily Updates in Your Inbox!!!
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.
- 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.