It had also proposed a joint commission comprising the Finance Minister as Chairperson and RBI Governor as Vice Chairman, Secretary in the Department of Economic Affairs, Secretary (Financial Services) and the heads of stock market, insurance, banking and pension fund regulators - SEBI, IRDA, RBI and PFRDA
- as members.
What's more, at the time of bidding, the intermediaries were told that the task of marketing and spreading awareness would be of the PFRDA
an exception of sorts if you consider other regulators like the Reserve Bank and the Insurance Regulatory & amp; Development Authority (IRDA).
Verma was eyeing a bigger role to head PFRDA
, which could have given him five more years as he is due to retire next January.
The Conference was attended by Shri Ratan P Watal, Secretary, Department of Expenditure, Shri Hemant Contractor, Chairman, PFRDA
, Shri R V Verma, Whole Time Member (WTM- Finance), PFRDA
He stated that the salient provisions of the Act related to subscriber interest include choice of pension fund manager and investment schemes to the subscriber, availability of minimum assured return schemes to be notified by the PFRDA
and the option of investment only in government securities.
Shri Contractor, Chairman, PFRDA
informed, that barring the two States, all the other State Governments, have notified joining NPS.
Q- What are the changes being initiated in the National Pension System after the PFRDA
Bill was enacted?
The investment space has been extended by PFRDA
for pension funds by explicitly permitting them to endow in Basel-III-compliant additional tier-I bonds published by scheduled commercial banks.
The legislation seeks to empower PFRDA
to regulate the New Pension System (NPS).
The Insurance Bill seeks to raise foreign investment cap in the sector to 49 per cent , while the PFRDA
legislation-- a brainchild of NDA government-- seeks a commensurate hike in foreign investment in pension schemes.
A- The PFRDA
Act was notified in February this year.
Verma, Officiating Chairman, PFRDA
, and other senior officers of the Government of India and financial sector regulators.