Pension plan can see mandatory enrollments
NEW DELHI: The government is studying the mandatory enrollment of workers in the pension plan when they join the workforce of the organized sector, while giving them the flexibility to decide their, as part of new efforts to provide a network of Solid social security for millions of workers, said a senior government official.
“There will be an automatic enrollment system and an employee can contribute Rs 100 while the employer can also contribute. People who are young today need to save for tomorrow, secretary of finance Rajeev Kumar said. In the Union Budget , the government has announced the plan, which will provide interoperability of the schemes and provide safeguards for the accumulated corpus.
Currently, pension plans are sold by insurance companies, mutual funds and companies operating under the National Pension System regulated by the Regulatory Authority and Development of Pension Funds of India. In addition, it provides the Employee Pension Plan by transferring a portion of the employee and employer contribution in addition to the.
The finance secretary said the idea was to bring them all together under one umbrella so that subscribers would not lose their money in case they changed jobs. In addition, the government believes that the pension sector is a potential source of a large flow of funds that will also encourage long-term investors to inject money into infrastructure and other sectors.