tag:blogger.com,1999:blog-19649274.post2731650922323873200..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Article on the Indian pension reformAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-19649274.post-80015004875175102932007-05-05T11:15:00.000+05:302007-05-05T11:15:00.000+05:30Interesting thta Mukul Asher uses the word "innova...Interesting thta Mukul Asher uses the word "innovative" to describe the NPS.<BR/><BR/>First, it mandates that 40% of accumulated balance must be used to purchace an annuity. Nowhere in the world are there efficient annuity markets. Not even in Chile. Why is the government pusing workers into a market fraught with market failures<BR/><BR/>Secondly, the Chilean model would have been better, since it given workers a wider portfolio choice and better risk management. Plus, private accounts would jumpstart the nascant corporate debt market and add to the depth of domestic markets. <BR/><BR/>Most importantly, NPS offers no scope for scaling up social security for workers in organized sector. <BR/><BR/>But NPS is much better than the defined benefit plan operational currently.Anonymousnoreply@blogger.com