Pension Fund Regulatory and Development Authority (PFRDA) in its endeavour to promote National Pension System (NPS) had organised a workshop on NPS for corporates in association with FICCI for propagating on pension and retirement planning. The workshop held ay Hotel Raj Park, Alwarpet, Chennai on 29th Nov 2019 aimed at disseminating the concepts of retirements planning and understanding NPS features and decoding the available tax incentives extended to subscribers under the IT Act. Mr.P.V.Vasantha Kumar, Convenor, HR Panel, FICCI TNSC & Director, Prometo Consulting Pvt Ltd welcomed the gathering.
In his address he stated that there is a need for clear communication on pension details, benefits, transparency of plans and tax benefits of pension plans to the employees. Mr.P.V.Vasantha Kumar, Convenor, HR Panel, FICCI TNSC & Director, Prometo Consulting Pvt Ltd welcomed the gathering. In his address he stated that there is a need for clear communication on pension details, benefits, transparency of plans and tax benefits of pension plans to the employees. There is a need that the pension plans should also be transparent and easy to understand. People should also be aware of the tax benefits associated with pension plans and especially the National Pension System.
Pension plans should also relate to the existing salary levels and must be able to sustain the cost of living post retirement. The New Pension System (NPS) is one such tool that can be offered by organizations to their employees as a part of their compensation policy. Delivering the key note address Shri Supratim Bandyopadhyay, WTM , PFRDA said that more people needs to be enrolled and the system need to be encouraged. Shri Supratim Bandyopadhyay in his keynote address added that “The NPS is a defined contribution pension plan, where the employer also contributes and the employee contributes as well.
A corpus is built-up and on the basis of the corpus an annuity is purchased. And an old age pension – a regular source of income is generated for the retired person.”The National Pension System performance is at par. It is touted to be a market-based scheme. Checks are made to ensure that the assets remain safe. They are proven to get returns of 9.85 pc. There is high level of investment made in the blue-chip companies which leads to steady growth.The best part of the NPS is 60 percent of the corpus fund is absolutely tax-free. No other equivalent product in the industry offers such an advantage.
The remaining 40% of the funds is retained for providing annuity. Shri Mono Phukon, GM, PFRDA highlighted on the features of the NPS saying, “NPS is an individual pension account. The individual has full control over it. It is not the employer who opens the account on his behalf, it is the employees account. It is low cost, the lowest cost pension product in the world. It is the cheapest across all products in India. Mr.Sudhakar Sethuraman, Partner, Deloitte Haskins & Sells LLP gave a presentation on “Tax incentives on retirement planning”. The informative workshop ended with an active interactive question and answer session.