The government has announced that an interim investment pattern would be notified for funds collected under the New Pension Scheme to allow 5 per cent investment of the corpus in stock markets.
This means that 5 per cent of the money collected under new pension schemes (like the Providend Fund) might be invested in the stock markets.
The government says this plan will allow more funds to flow into the market and ensure better returns to NPS subscribers. Currently, the contribution under NPS is put in the public account, which earns only 8 per cent interest.
The central government employees recruited since January 1, 2004, are under the New Pension System. The NPS has a fund of Rs 1500 crore.
While 19 states have supported the government's move, the Left-ruled states of West Bengal, Kerala and Tripura have opposed the plans. The Left parties believe that the funds should not be exposed to risks in the stock markets.
Do you welcome the government's move?
Do you believe that it is risky to invest even 5 per cent pension funds in the stock markets?
How should the government ensure better returns to members? Tell us your views.
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