The Hindu : Front Page : Pension regulatory authority Bill introduced

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Tuesday, Mar 22, 2005

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Pension regulatory authority Bill introduced

By Our Special Correspondent

NEW DELHI, MARCH 21. The Pension Fund Regulatory and Development Authority Bill 2005, introduced in the Lok Sabha on Monday, seeks to replace the ordinance promulgated on December 29 last year. It would provide for the setting up of an authority to promote old age income security, by establishing, developing and regulating pension funds with a view to protecting the interests of subscribers to its various schemes.

The Bill would vest the body with powers to regulate the new pension system (NPS) and other such funds through regulation or guidelines, prescribe disclosure standards, levy fees for the services rendered to meet its expenses and impose penalties for any violation of the provisions of the legislation.

As per the Bill, the PFRDA, besides having a chairperson, would have not more than five members, of whom at least three would be whole-time members to be appointed by the Centre "from amongst persons of ability, integrity, and standing and having experience and knowledge in economics, finance, law or administrative matters with at least one member from each discipline."

The Bill stipulates that the decisions taken by the authority at its meetings would be decided on the basis of majority votes and the chairperson or the member presiding over such meetings would have a second or casting vote.

Apart from ensuring the orderly growth of the NPS, the PFRDA , among other things, would approve pension schemes and their terms and conditions, besides laying down the norms for management of the corpus of the pension funds, including investment guidelines. It would also be responsible for setting up a grievance redressal mechanism and adjudication of disputes between intermediaries and with subscribers.

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