Pension Fund Regulatory and Development Authority Bill, 2011 passed by Lok Sabha

Lok Sabha passed the Pension Fund Regulatory and Development Authority Bill, 2011 on September 4, 2013 with the intent to provide subscribers a wide choice to invest their funds for assured returns by opting for Government Bonds etc. as well as in other funds depending on their capacity to take risk. Some of the key amendments incorporated in the Bill based on the recommendations of the Standing Committee on Finance are as follows:
a) 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. It will also make PFRDA a statutory authority.

-Press Information Bureau

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