It is reported in the press that Pension Fund Regulatory and Development Authority (PFRDA), is proposing to invest the NPS funds in the private equity and mutual funds. This proposal is being forwarded to the Finance Ministry for approval. Now, the NPS funds, the Provident Fund contributions from those central government employees who are recruited after 01-01-2004, are with the government only.
The proposal to hand over a part of these funds to private investors/equity is dangerous and may result it being completely wiped out in the turbulent market. The proposal is against the interest of the workers and is to be dropped. There should be strong protest from concerned stake holders.