On December 9, 2021, Ministry of Labour and Employment told the Rajya Sabha that; a Global Pension Index that placed pension system of India towards bottom of the list was not prepared on the basis of reliable comparable international data.

Key Facts

• The Global Pension Index Report was published in 2021 and has ranked India at 40^th place, out of 43 countries for its pension system.
• Report was published by Mercer, a management consulting firm.
• Index is prepared on the basis of certain criteria of sustainability, adequacy, and integrity.
• Index placed India in the same category of Japan, South Korea and a few other countries.

National Pension System Trust (NPS Trust)

NPS Trust is a specialised division of Pension Fund Regulatory and Development Authority in India. It works under the parent head of Ministry of Finance. National Pension System (NPS) is a voluntary defined contribution pension system. It is an EEE (Exempt-Exempt-Exempt) instrument, in which entire corpus escapes tax at maturity. Under this system, entire pension withdrawal amount is tax-free. All the citizens of India including workers of unorganized sector can avail the benefits of NPS system on a voluntary basis. Reserve Bank of India (RBI) also allowed the Non-Resident Indians (NRI) to subscribe to NPS on October 29, 2015. NPS is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA).