Pension Fund Mulls Allowing Minors To Join National Pension Scheme

New Delhi: Pension fund regulator PFRDA is looking at the feasibility to allow minors open an account under the National Pension System (NPS) and will go through the legal aspects associated with the matter, its chairman Hemant Contractor has said. "We are looking at the possibility of allowing minors to join NPS because in some countries it is allowed. So we are looking at that issue," Contractor said Press Trust of India

He said there were legal issues as far as going to be open.
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"There are legal issues like a minor's ability to enter a contract. Under the law, the minors can not enter into a contract. Another issue is like whether they can cancel their responsibilities under the contract, so we are trying to find out how to get around those issues, "he said. When asked about the time-frame to bring any clarity on the issue, he said there will be a discussion internally then only the PFRDA will approach the finance ministry on the matter.

"We are looking at it very closely, may be 2-3 weeks," Contractor said further. The Pension Fund Regulatory and Development Authority (PFRDA) runs the National Pension Scheme and the Atal Pension Scheme (APY) under its fold. The NPS is the government as well as the private sector employees, while the APY chiefly caters to those in the unorganized sector. The total subscriber base of the pension regulator is 1.81 crore as on October 31 this year. There were 1.54 crore subscribers on the end of the fiscal year 2017

(Except for the headline, This story has not been edited by NDTV staff and is published from a syndicated feed.)