PENSION SECTOR
- With a View to provide adequate retirement income, the National Pension System (NPS) was introduced by the Government of India.
- It has been made mandatory for all new recruits to the Government (except armed forces) with effect from 1st January, 2004 and has also been rolled out for all citizens with effect from 1st May, 2009 on a voluntary basis.
- The features of the NPS design are self-sustainability, portability and scalability.
- As a pure “defined contribution” product, returns would be totally market driven.
- Pension Fund Regulatory and Development Authority (PFRDA), set up as a regulatory body for the pension sector, is engaged in consolidating the initiatives taken so far regarding the full NPS architecture and expanding the reach of the NPS distribution network.
- As of date, 26 State Governments have notified NPS for their employees.
- The corpus being managed under the NPS is 44, 272 crore as on 31st March, 2014.
SWAVALAMBAN SCHEME
- To encourage workers in the unorgnised sector to save voluntarily for their old age, an initiative called Swavalamban Scheme was launched on 29th September, 2010.
- It is a co-contributory pension scheme whereby the Central Government would contribute a sum of 1000 per annum in each eligible NPS account opened with a saving of Rs.1000 to Rs.12000 per annum.
- Government will provide its contribution for up to 5 years to beneficiaries who are registered in the Scheme. The Scheme is extended up to 2016-17.
- The scheme operates through 79 Aggregators including some State Government(s), Public Sector Banks (PSBS), Regional Rural Banks (RRBS), MFIs, NBFCS and private sector entities.
INSURANCE SECTOR
The Public Sector Insurance Companies operating in the sector are as follows:-
- Life Insurance Corporation
- National Insurance Company Limited
- Oriental Insurance Company Limited
- United India Insurance Company Limited
- New India Assurance Company Limited
- General Insurance Corporation of India Limited (National Re-Insurer)
- Agriculture Insurance Company of India Limited (Company floated by Non Life Public Sector insurance companies along with NABARD)
- The insurance sector was opened up for private participation with the enactment of the Insurance Regulatory and Development Authority Act, 1999.
- The IRDA at present consists of the Chairman, 3 full-time members and 4 part-time
- The Authority is functioning from its Head Office in Hyderabad, Andhra Pradesh.
- The core functions of the Authority include (i) licensing of insurers and insurance intermediaries; (ii) financial and regulatory supervision; (iii) regulation of premium rates; and (iv) protection of the interests of the policy holders.