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Rollback of CPS difficult: PFRDA
Even as the government staff intensifies their protest over the new contributory pension scheme (CPS) demanding restoration of the old pension scheme, the pension fund regulator PFRDA said that the government might find it difficult to move back to general provident fund (GPF) pension system which was discontinued due to its huge fiscal burden.
​Hyderabad: Even as the government staff intensifies their protest over the new contributory pension scheme (CPS) demanding restoration of the old pension scheme, the pension fund regulator PFRDA said that the government might find it difficult to move back to general provident fund (GPF) pension system which was discontinued due to its huge fiscal burden.
Meanwhile, the Pension Fund Regulatory and Development Authority of India (PFRDA) wants the government to more than treble the investment levels in equity markets by government subscribers under the National Pension System (NPS), also called as CPS, up to 50 per cent from 15 per cent now.
Old pension system was replaced with contribution-based National Pension System (NPS) in 2004. “The government brought in NPS because the old system was proving to be fiscally burdensome very much. So, because of that you can’t go back to that. It will become very difficult for the government,” said PFRDA Chairman Hemant G Contractor.
The PFRDA manages NPS. It has sent a proposal to government seeking to allow government subscribers (state and Central government employees) invest up to 50 per cent in equities under the NPS. A lot of money can start flowing into equities, Hemanth Contractor said here on Thursday.
The government is quite sympathetic to our view, he said, adding they had several rounds of discussions and he expects this to happen in the next couple of months. "We are quite optimistic about this. It should happen," he added.
However, speaking to The Hans India, V Nageshwara Rao, general secretary of Confederation of Central Government Employees and Workers said that this move if accepted would further expose the future of government employees to the vagaries of stock markets.
Stating that even the PFRDA Chairman said it is difficult but not impossible to rollback, G Devi Prasad, vice-chairman of All India State Government Employees Federation, called for a strong political resistance to defeat the new National Pension Scheme.
