Tuesday, October 28, 2014

Information sought by PFRDA on existing pension/superannuation schemes from CPSEs

Information sought by PFRDA on existing pension/superannuation schemes

PFRDA Act gives very wide roles and responsibilities to the regulator with respect to the promotion of old age income security in the country, for promoting pension industry and for protecting the interest of the subscriber to pension and retirement funds. PFRDA Act applies to the National Pension System and also to any other pension scheme not regulated by any other enactment.

In keeping with the demand of the market, quite a few pension plans/ superannuation funds/ retirement schemes have been offered by corporates/CPSEs for their employees for which the regulatory framework may not be clear. The market dynamics are such that products and services including financial services develop faster than the regulatory mechanism for such services.

Now that there is a statutorily setup dedicated pension regulator with specific responsibility for the promotion of old age income security, developing and regulating pension funds, and protecting the interest of subscribers, PFRDA is in the process of framing regulations for the National Pension System and also for any other pension schemes which are not regulated by any other enactment. PFRDA has accordingly sought information on existing pension/ superannuation funds/schemes from all PSUs with respect to their regulatory jurisdiction, supervisory mechanism, investment guidelines, risk management strategies, number of subscribers, assets under management etc. so that the areas of concerns can be addressed suitably in line with the provisions of the PFRDA Act.

The letter sent to all CPSEs is as under:

Read more: http://pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=527
Tags: CPSE, National Pension System, New Pension Scheme, New Pension System, NPS, PFRDA, Promotion

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