An interim investment pattern for funds collected under the new pension scheme (NPS) from all Central and State Government employees recruited after January 1, 2004, is to be notified soon.

The NPS is based on defined contribution and not defined benefits, as was the case in the earlier Government pension scheme.

"Pending the passage of the PFRDA (Pension Fund Regulatory and Development Authority) Bill, we intend to notify an interim investment pattern (for NPS) on the same lines as the existing investment pattern for non-government provident funds," the Union Finance Minister, Mr P. Chidambaram, told newspersons after a conference of Chief Ministers on pension reforms.

He also said that a consensus was emerging that the PFRDA Bill should be passed as soon as possible. "The Bill is a necessity and has to be passed with some modifications," he added.

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