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ShareMumbai: SBI Pension Funds, which had its allocation cut in the current year, has performed better than its peers under the New Pension Scheme for government employees as of September-end.
SBI Pension Funds, that was given 40% of the total amount contributed by central and state government employees, gave an annualised return of 13.41% as on September 30, 2009.
The other two funds -- UTI Retirement Solutions and LIC Pension Funds -- gave returns of 12.73% and 10.57%, respectively, as per the New Pension System Trust.
As on October 23, 6.53 lakh government employees subscribed to the New Pension Scheme.
The Pension Fund Regulatory & Development Authority (PFRDA) had trimmed the allocation of funds to SBI Pension Funds to 40% from 55% earlier and UTI Retirement Solutions' share was brought down to 31% from 40% before.
The amount granted for management to LIC Pension Fund was increased to a sharp 29% from 5% earlier. "The fund allocation was based on the competitive yields that the three fund managers have been able to provide on the funds they have managed," D Swarup, chairman of PFRDA, had said while announcing the allocations for 2009-10.
There are two schemes under NPS, where investments can be in debt and equity. In 2008-09, the operational scheme was where 85% of the funds have to be parked in government securities and bonds, while direct equity allocation can be 5%. The balance 10% can be allocated to equity-linked mutual fund schemes or private-sector debt
products.
Under the NPS, government employees who have joined after January 1, 2004, have to contribute 10% of their salary and daily allowance to the scheme and a similar amount is contributed by the government.
