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PFRDA to launch savings scheme on December 1

By SiliconIndia | Wednesday, 02 September 2009, 00:23 Hrs

Bangalore: Interim pension regulator PFRDA (Pension Fund Regulatory and Development Authority) will launch its savings scheme from December this year, which aims to give greater returns on the deposits, and can be withdrawn fully.

D Swarup, Chairman, PFRDA said, "We have decided to launch the savings scheme from December 1 this year. The returns on this scheme will be known as tier II account and expected to be higher due to our market-linked investment patterns."

Customers needing money in emergency situations would be able to withdraw their entire deposited sum. However, the customers, who want to open the Tier II account, must also have Tier 1 account and both accounts should run separately. "Those who want to open the Tier II account should essentially have Tier I account as the basic purpose of PFRDA is to manage the pension fund," a PFRDA official said.

Tier 1 account was operational from May 1, under the New Pension System. Under it, a customer can only withdraw 20 percent of the money as a lump sum before he or she attains 60 years of age. On attaining 60 years, the customers can withdraw 60 percent as lump sum.

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