The Union government has engaged the Asian Development Bank to provide technical assistance in implementing the new pension scheme for the unorganised sector.
"We are working with the Pension Fund Regulatory and Development Authority for the new pension plan for the unorganised sector. We will submit a report by April 2005," ADB's pension product expert, Graham Bird, told PTI on Friday.
He said the finance ministry has asked them to carry out a countrywide survey, provide inputs to design products, especially for the poor and assist the regulator in drawing up guidelines for the contribution pension system.
The new pension scheme was introduced in January 2004 for central government employees, except defence personnel. It would be extended to state government employees in the next stage and then to the unorganised sector.
ADB officials would meet all major financial players, especially mutual funds and insurers, apart from service providers to assess the pension market in India, Bird said.
ADB is expected to prescribe a level playing field for the new pension fund managers and tax structures to bring in over 80 per cent of the population under a social security scheme, he said.
The PFRDA has decided to allow six pension fund players, including one public sector undertaking, to come up with three options -- equity, balanced and debt schemes.
The bank will assess whether employees will get enough choice and return from these three schemes and suggest more schemes. The multi-lateral agency would also study whether the present tax structure would actually encourage the unorganised sector workers to opt for pension.
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