Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam
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Pensions broadly divided into two sectors: Formal sector pensions; Informal sector pensions.
Formal sector pensions in India can be divided into three categories; viz those schemes that come under an Act or Statute, Government pensions and voluntary pensions.
NPS investments have been restricted to 5% of the paid up equity capital of all the sponsor group companies or 5% of the total AUM under euqity exposure whichever is lower, in each respective scheme 10% in the paid up equity capital of all non-sponsor group companies or 10% of the total AUM under Equity exposure whichever is lower, in each respective scheme.
NPS investments have been restricted to 5% of the net-worth of all the sponsor group companies or 5% of the total AUM in debt securities whichever is lower in each respective scheme and 10% of the net-worth of all the non-sponsor group companies or 105 of the total AUM in debt securities whichever is lower, in each respective scheme.
Pension Funds have to ensure that the interest of the subscribers is safeguarded and that they should not incur any loss while exiting the existing investments to comply with the revised guidelines.
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