Lok Sabha Passes Pension Fund Regulatory and Development Authority Bill, 2011 with official amendments. The PFRDA Bill, 2011 was referred to the Standing Committee on Finance on the 29th March, 2011 for examination and report thereon. The Standing Committee on Finance gave its Report on 30th August, 2011. Some of the key amendments incorporated in the Bill based on the recommendations of the Standing Committee on Finance are as follows: a) That the subscriber seeking minimum assured returns shall be allowed to opt for investing his funds in such scheme providing minimum assured returns as may be notified by the Authority; b) Withdrawals will be permitted from the individual pension account subject to the conditions, such as, purpose, frequency and limits, as may be specified by the regulations; c) The foreign investment in the pension sector at 26% or such percentage as may be approved for the Insurance Sector, whichever is higher; d) At least one of the pension fund managers shall be from the public sector; e) To establish a vibrant Pension Advisory Committee with representation from all major stakeholders to advise PFRDA on important matters of framing of regulations under the PFRDA Act. Beside above, the Bill would make the Pension Fund Regulatory and Development Authority a statutory authority. Presently, it has non-statutory status. The NPS is based on the principle that ‘you save while you earn’ especially for retirement and is mainly for those who have a regular income. This Bill would also provide subscribers a wide choice to invest their funds including for assured returns by opting for government bonds etc. by-[{()}]
Posted on: Sat, 07 Sep 2013 12:08:25 +0000
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