PFRDA – Benefits of auto enrolment pension
The Automatic enrolment with health and insurance cover under Atal Pension Yojana is expected to enhance the coverage particularly in the unorganized sector and help in saving for their retirement while they are earning. As employer contribution is voluntary, an affirmative action, there may not be much resistance to this change.
The employers may be extended the same tax rebate for the contributions made towards the pension account of their employees/ workers as available under NPS for employers. While claiming tax rebate, the employer will have to submit documentary evidence for having contributed to the pension account of the employee/ workers. The maximum number of workers for which one can claim such rebate may be kept at 19, as 20 and above are already covered under the EPF and MP Act. All Micro and Small industries, panchayats, anganwadis etc. will be under obligation to promote this scheme, and help in registration of their underlying workers/ members.
Being automatically enrolled back into auto enrolment pension
If a worker stops paying into the auto enrolled APY account for some months, the existing provisions of APY will be applicable.