Govt may introduce amended PFRDA Act in the Budget 2020 session
The government is moving ahead to make Pension Fund Regulatory and Development Authority (PFRDA) as the sole watchdog for all pension products in the country and aims to bring the amended PFRDA Act in the upcoming budget session, a senior official in the know has told CNBC-TV18. The inter-ministerial consultations on proposed amendments are over.
The government is moving ahead to make Pension Fund Regulatory and Development Authority (PFRDA) as the sole watchdog for all pension products in the country and aims to bring the amended PFRDA Act in the upcoming budget session, a senior official in the know has told CNBC-TV18. The inter-ministerial consultations on proposed amendments are over.
It is further reliably learnt that the government aims to differentiate between pension and insurance products and that the Insurance Regulatory and Development Authority (IRDA) may regulate only insurance products.
At present, pensions products are sold by both insurance companies as well as mutual funds, which makes Irdai and Sebi, as the regulators for those products.
However, as the current practice stands, the Employees' Provident Fund Organisation (EPFO) schemes will not be covered under the amended PFRDA Act.
Amended act, new name
CNBC-TV18 has also picked up from reliable North Block sources that the PFRDA Act amendments may result in a change in title of the act. The word "fund" may be dropped from the PFRDA Act, i.e. the changed PFRDA act is just likely to be called the "Pension Regulatory & Development Authority Act".
NPS Trust may be kept separate
The powers, functions and duties of the NPS Trust, which are currently laid down under the PFRDA (National Pension System Trust) Regulations 2015, may now come under a charitable trust or the Companies Act.
People in the know have told CNBC-TV18 that the government is intent to keep NPS Trust separate from the pension regulator and may be managed by the government itself with an expanded board of 15 members. Out of this the majority, eight, are likely to be from the government. It is noteworthy that approximately assets worth approximately Rs 4 lakh crore are under management with the NPS trust.
First Published: Jan 13, 2020 4:11 PM IST
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