Pension Fund Regulatory and Development Authority (PFRDA) notifies a series of Amendments

Posted 23 Feb 2024

2 min read

Amendments are in line with the Union Budget 2023-24 announcements to review regulations to reduce the cost of compliance and enhance the ease of doing business.
- Also, Amendments will enhance transparency in whole ecosystem.

Key Reforms:
- National Pension System (NPS) Trust: Strengthened provisions related to appointment of Trustees, their terms and conditions, holding of meetings of Board of Trustees and appointment of CEO.
  - NPS was introduced by the Union Government in 2004 to help the individuals have income in the form of pension.
- Pension Fund: Brought under the ambit of the Prevention of Money Laundering Act (PMLA), 2002.
  - Constitution of additional Board committees by Pension Funds such as Audit Committee and Nomination & Remuneration Committee.
  - Aims to improve governance in line with Companies Act, 2013 and enhanced disclosure by Pension Funds.
- Trustee Bank (TB): When TB proposes to change its status or constitution, it shall obtain prior approval of the PFRDA.
- Central Recordkeeping Agency (CRA): Implementation of fraud prevention and mitigation policy by CRA to protect the interest of subscribers.
  - Introduced criteria of fit and proper person, similar to SEBI’s initiative.

Statutory body established under PFRDA Act, 2013.
Objective is to promote old age income security by establishing, developing and regulating pension funds.
Works under Ministry of Finance.

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