NPS panel recommends 0.5% transaction fee to incentivise distributors

Big savers will have to pay more to invest in the New Pension Scheme (NPS) if the government accepts the recommendations of an expert panel chaired by former Sebi chairman GN Bajpai . To improve the incentive for sellers and protect small savers, the panel has recommended a charge of 0.5% on every transaction instead of a flat fee of .`20 paid by individual volunteer members now. The NPS manages the pension funds of civil servants who joined service from January 2004 and also individual volunteer members. Though well regulated, the scheme, which competes with other financial products such as pension plans sold by insurance companies or mutual funds, has been floundering due to a faulty marketing model

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