FM seeks to broaden NPS coverage: Move to rope in gig workers; consultations on

NEW DELHI: While pitching National Pension System as an attractive investment option, finance minister Nirmala Sitharaman Wednesday sought broadening its coverage, with a special focus on gig and platform workers & women , and suggested that its best get subscribers when they are young so that the full impact of “compounding” of returns plays out over their working life.

Addressing the NPS Diwas event, the FM said that in line with budget announcement, a forum of regulators and govt departments had been set up that, among other things, will seek to harmonise disclosure and investment standards, enable portability among pension products and strengthen customer protection. The panel comprises representatives from the Pension Fund Regulatory and Development Authority, capital market regulator Sebi, insurance watchdog IRDAI, EPFO and govt departments.

Currently, insurance companies, mutual funds and entities regulated by PFRDA hawk pension plans. Besides, EPFO manages Employees Pension Scheme, each with their own management, investment & cost structures. While the issue has been on govt’s radar for over a decade, so far, no solution has been found as each entity is unwilling to agree to a common set of regulations. “Stakeholder consultations are underway, the objective is to have a predictable, citizen-centric pension market with clear rules and seamless services,” Sitharaman said.