The Pension Fund Regulatory and Development Authority (PFRDA) is a statutory body established by the Government of India in 2003. It is responsible for regulating and promoting the pension sector in the country.
The government has appointed Deepak Mohanty as the chairman of PFRDA (Pension Fund Regulatory and Development Authority). The authority consists of a chairperson and not more than six members, with at least three of them being whole-time members, appointed by the Central Government.
Shri Suraj Bhan was appointed as a Trustee on the Board of NPS (National Pension System) Trust effective from 12th December 2018. He has been designated as the Chairman of the Board of NPS Trust starting from 12th November 2022.
Here’s some key information about PFRDA:
Objectives: The primary objectives of PFRDA are to promote old-age income security through pension products, regulate and develop the pension industry, and protect the interests of pension subscribers.
- National Pension System (NPS): PFRDA administers the National Pension System, which is a voluntary, defined contribution retirement savings scheme for the employees in the organized and unorganized sectors of the Indian economy. It allows individuals to contribute regularly to a pension account during their working years, and the accumulated savings are invested to generate returns for retirement.
- Regulatory Functions: PFRDA regulates and oversees the pension industry in India. It formulates regulations, guidelines, and operational frameworks for various pension schemes. It also registers and regulates pension fund managers, custodians, and other entities involved in the pension sector.
- Subscriber Services: PFRDA provides services to NPS subscribers, including facilitating the opening of NPS accounts, maintaining records, and providing regular statements of transactions and account balances. It also offers online platforms and mobile applications for subscribers to access their accounts and manage their pension investments.
- Pension Fund Managers: PFRDA approves and regulates pension fund managers (PFMs) who manage the investments of NPS subscribers. PFMs are responsible for investing the contributions in various asset classes such as equities, government securities, corporate bonds, and alternate investment funds, based on the subscriber’s chosen investment options.
- Pension Products: PFRDA has introduced different types of pension products to cater to the diverse needs of individuals. These include NPS for government employees (Central Government NPS and State Government NPS), NPS for corporate sector employees, and NPS for individuals (All Citizen Model and Atal Pension Yojana).
- Intermediaries: PFRDA regulates intermediaries involved in the pension sector, such as Point of Presence (PoP) service providers, aggregators, and central record-keeping agencies (CRA). These entities play a crucial role in facilitating the onboarding of subscribers, fund collection, and record-keeping.
- Grievance Redressal: PFRDA has a well-defined grievance redressal mechanism to address complaints and grievances from subscribers, PFMs, and other stakeholders. It ensures prompt resolution of grievances and takes appropriate action against entities found guilty of any violations.
- Financial Education and Awareness: PFRDA conducts initiatives to promote financial education and awareness about pensions among individuals. It aims to enhance the knowledge and understanding of subscribers regarding the importance of retirement planning and the benefits of pension schemes.