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NPS scores over EPF yet again

NPS scores over EPF yet again

The scheme under NPS for central government employees has given 12.39 per cent return compared to 8.5 per cent interest on EPF account during 2012-13.

The National Pension System (NPS ) has yet again given higher return than Employee Provident Fund (EPF). The scheme under NPS for central government employees has given 12.39 per cent return compared to 8.5 per cent interest on EPF account during 2012-13.

The scheme for state government employees has given 13 per cent return, while the return under Swavalamban, a scheme for people employed in the unorganized sector, has been 13.40 per cent during the year.

This was informed on Wednesday by the Pension Regulatory and Development Authority (PFRDA) on Wednesday, May 15.

 NPS Returns in 2012-13
 Scheme Weighted Average Returns (%)
 Central Government  12.39
 State Government  13.00
 Swavalamban  13.40
 Private: Equity  8.38
 Private: Corporate Debt
  14.19
 Private: Government Debt
  13.52
The pension funds for central and state government employees (compulsory contribution) are invested only in fixed income securities and are managed by government fund managers - LIC Pension Plan, SBI Pension Plan and UTI Retirement Solution.

The schemes for voluntary subscribers have given on an average 8.38 per cent under equity, 14.19 per cent under corporate debt and 13.52 per cent under government debt scheme. At no point of time, the exposure to equity under NPS can go more than 50 per cent.

Contribution made under voluntary schemes are managed by one of the seven fund managers, namely ICICI Prudential Pension, IDFC Pension, Kotak Mahindra Pension, Reliance Capital Pension, SBI Pension Funds, UTI Retirement Solutions and DSP BlackRock Pension Fund Manager.

The National Pension System, which was introduced by the Central Government in January 2004 for government employees, and subsequently extended to the private sector in May 2009, has accumulated a corpus of Rs 33,000 crore contributed from 50 lakh subscribers.


Published on: May 15, 2013, 7:03 PM IST
Posted by: Surajit Dasgupta, May 15, 2013, 7:03 PM IST