Few takers in the unorganised sector

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NEW PENSION SCHEME
By Abhishek Anand

Photo : Shailendra Pandey

THE NEW Pension Scheme (NPS) is set for a makeover. To make it popular, the Pension Fund Regulatory Development Authority (PFRDA) is considering increasing the commission of NPS agents, so that they push the product more aggressively.
NPS allows an investor to save a nest egg for retirement days. Those who opt for the scheme need to open an account and keep investing some money every month for the tenure of their choice.
The proceeds of these accounts are then invested in a mix of equity, government bonds and fixed- income instruments, depending upon age and other factors. The money in the account is divided into two tiers. One portion the investor can withdraw at any time. The second can only be withdrawn after retirement.
But the scheme has failed to attract most private and unorganised sector workers. From 1 May 2009 to 2 July 2010, it managed to win only 9,673 subscribers. “One reason for the poor response could be the low commission paid to the agents. We are considering revising the whole compensation structure,” Yogesh Agarwal, chairman, PFRDA told TEHELKA. Now walk the talk.