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Workers to get auto-enrolled for APY
Posted on: 29/Sep/2016 4:27:12 PM
The Pension Fund Regulatory and Development Authority (PFRDA) has so far been focused only at the unorganized sector workers. This will soon consider enrolling employees for Atal Pension Yojana (APY). Accordingly, those working with the private sectors, government and semi-government organizations will also get enrolled in the scheme. This APY auto-enrollment will be additionally done in addition to the EPS or NPS pension scheme.
In India, a large portion of working force does not have a proper retirement savings plan. They may not be able to manage with the Employees’ Provident Fund (EPF) or Employee Pension Scheme (EPS). It was in June 2015 that the Atal Pension Yojana (APY) was launched. This intends streamlining the pension needs of disorderly labor force. There were over 30 lakh subscribers for APY as of 31st August 2016.
Employees will be soft compelled to join APY. Very soon, joining in the APY scheme may turn mandatory for employees. This soft compulsion or automatic enrolment is likely to be introduced by PFRDA. This will substantially increase pension coverage. To note, a concept note is already introduced. The PFRDA has identified that those belonging to the informal sector are ideal for APY.
