A Rapid Death

The New Pension System (NPS), which should have become an important part of the country’s savings landscape, is dead, at least for the time being. This, more or less, is what a government committee set up to examine the NPS is saying. The recommendations of the ‘Committee to Review Implementation of Informal Sector Pension’, (the Bajpai committee on NPS reforms) have been put up on the PFRDA website, inviting comments. The part of the report that has attracted the most attention is the recommendation that a 0.5 per cent commission should be paid for selling NPS. While this itself is a huge departure from the original structure, it is actually not the most important part of what has been said. In a cogent and lucidly-written report, the committee has found that practically everything about

This article was originally published on July 12, 2011.