Pension Fund Regulatory and Development Authority (PFRDA) is in talks with FPSB and other organisations India to create a new distribution force called ‘retirement advisers’ for National Pension System, said Deepa Kotnis, Chief General Manager, PFRDA.
Speaking at the Financial Planning Symposium organized by FPSB in Mumbai, Kotnis said, “We are working with various organizations including FPSB to flesh out the concept of RAs and we were seeking inputs from various quarters at this point of time. It is in very early stage and right now I can’t tell by when it would be completed.”
NPS reportedly manages a corpus of Rs 35,000 crore, bulk of which is contributed by government servants.
At present, NPS comes under EET (Exempt Exempt Tax) status. The Finance Ministry is reported to take a decision on Direct Taxes Code (DTC) bill by winter session which will supersede the existing Indian Income Tax Act. Kotnis informed that the bill seeks to give a tax exemption in withdrawal of 60% of the retirement corpus and annuitize the remaining portion. The bill also seeks to make it easier for investors to switch their pension fund account, she added.
