Pushing ahead with pensions

There is a clear need for expanding the reach of India’s pension system, given that nearly 90 per cent of the country’s working population enjoys little or no post-retirement income security. Mandating it by statute, as in the case of provident fund contributions, is one option here. But a market solution, where asset managers are enabled to reach out to potential subscribers to contribute to such a scheme, is perhaps the more enduring cost-effective solution. That cannot happen until the Pension Fund Regulatory and Development Authority (PFRDA) Bill, in limbo since 2005, is passed into law. 

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