New Delhi, July 02: Seized of the challenges faced by the PFRDA, the Economic Survey on Thursday said the success of the pension reforms will help in facilitating the flow of long-term savings for investment and fund for infrastructure development.
It would also help the government to fund its pension liabilities, said the Survey tabled in Parliament.
"PFRDA faces the challenge of covering the unorganised sector under the New Pension Scheme (NPS), empowering the subscribers to take appropriate investment decisions based on their risk and return profile, provide safety and optimum returns, and to improve financial literacy levels," it said.
The pension sector reforms were initiated in India to establish a solid and sustainable social security arrangement in the country against the backdrop that only about 12-13 per cent of the total workforce was covered by any formal social security system, it said.
The NPS, it said, which was introduced by the government in January 1, 2004 for new entrants to the central government service, except armed forces, was to be extended gradually to the remaining 87 per cent of the total workforce on the voluntary basis.
The government introduced the NPS for all citizens from May 1, 2009.
Bureau Report
