Budget 2020: Government to segregate Pension of its employees from those of others
Government pension funds to be separated from other employee funds
February 01, 2020 / 01:33 PM IST
Changes in the Pension Fund Regulatory and Development Authority (PFRDA) Act have been proposed by the Finance Minister Nirmala Sitharaman in Budget 2020.
The New Pension Scheme (NPS) Trust for Government employees would be separated from the PFRDA Pension Trust for others.
The PFRDA was established in 2014 and the entire pension funds for central and public sector workers were initially moved to the National Pension Scheme, and later thrown open for all organised employees and retail investors.
Necessary amendments would be made in the PFRDA Act for this segregation to motivate employees to plan for their old age, Sitharaman announced in her Budget 2020 speech.