The Pension Fund Regulatory Development Authority (PFRDA) is likely to allocate Rs 4,100 crore in 2010-11 among the three pension managers, State Bank of India, UTI Mutual Fund and LIC Mutual Fund. Last year, the regulator had allocated Rs 3,700 crore.
The corpus would mainly be the contribution of central and state government employees. At present, 25 states have signed up for the new pension scheme (NPS).
The NPS’ board of trustees decided to review the allocation formula. The allocations will be decided on the basis of the managers’ performance over the past year. According to PFRDA’s website, SBI’s pension fund had the highest net asset value (NAV) under central government schemes. As on April 23, SBI pension fund had an NAV of Rs 12.82 for central government employees, while UTI Retirement Solutions posted an NAV of Rs 12.38. LIC Pension Fund’s NAV was Rs 12.41.
The final decision will be taken by the NPS’ board of trustees on Monday. Last year, SBI had got 40 per cent, UTI MF 31 per cent and LIC MF 29 per cent.
PFRDA has also launched a small-ticket pension scheme called NPS Lite. This is mainly aimed at helping self-help groups invest their money in NPS. Under NPS Lite, the minimum annual investment limit is Rs 2,000, lower than the Rs 6,000 per annum for the unorganised sector. The annual record-keeping charges have been brought down to Rs 65-70
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