Pension regulator PFRDA on Friday said it has increased incentives payable to Points of Presence (POPs) – the principal distributive points for National Pension System (NPS) – to promote the social security scheme.
As per an official release, the fee for initial subscriber registration to a POP has been increased to Rs 200 from the current Rs 125.
Also, a new incentive towards increasing persistency has been introduced. POPs will now receive an incentive of Rs 50 per account per annum for every account which continues to contribute a minimum of Rs 1,000 in a financial year.
Charges have also been increased in case of e-NPS (for subsequent contributions).
PFRDA said it “believes that the renewed incentive” will help in increasing the reach of pensions in India, through the efforts of POPs.
Pension Fund Regulatory and Development Authority (PFRDA) said it has taken several initiatives in the past few years to increase pension coverage. These include, introduction of e- NPS, reducing minimum contribution levels, new investment instruments and aggressive life cycle funds.