Pension Fund Regulatory and Development Authority (PFRDA) is the

regulatory body A regulatory agency (regulatory body, regulator) or independent agency (independent regulatory agency) is a government authority that is responsible for exercising autonomous jurisdiction over some area of human activity in a licensing and regu ...

for overall supervision and regulation of

pension A pension (; ) is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the person's retirement from work. A pension may be either a " defined benefit plan", wh ...

s in

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

. It operates under the

jurisdiction Jurisdiction (from Latin 'law' and 'speech' or 'declaration') is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, the concept of jurisdiction applies at multiple level ...

Ministry of Finance A ministry of finance is a ministry or other government agency in charge of government finance, fiscal policy, and financial regulation. It is headed by a finance minister, an executive or cabinet position . A ministry of finance's portfoli ...

in the

Government of India The Government of India (ISO 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...

. It was established in 2003 based on the recommendations of the Indian government OASIS report and was part of the establishment of the Indian

National Pension Scheme The National Pension System (NPS) is a defined-contribution pension system in India regulated by the Pension Fund Regulatory and Development Authority (PFRDA) which is under the jurisdiction of the Ministry of Finance of the Government of ...

History

In 1999, the Government of India had commissioned a national project titled "OASIS" (an acronym for old age social & income security) to examine policy related to old age income security in India. Based on the recommendations of the OASIS report the Government of India introduced a new Defined Contribution Pension System for the new entrants to Central/State Government service, except to Armed Forces, replacing the existing system of Defined Benefit Pension System. On 23 August 2003, the Interim Pension Fund Regulatory & Development Authority (PFRDA) was established through a resolution by the Government of India to promote, develop and regulate pension sector in India. The contributory pension system was notified by the Government of India on 22 December 2003 to the National Pension System (NPS) with effect from 1 January 2004. The NPS was subsequently extended to all citizens of the country with effect from 1 May 2009 including self employed professionals and others in the unorganized sector on a voluntary basis. The Pension Fund Regulatory & Development Authority Act was passed on 19 September 2013 and the same was notified on 1 February 2014. PFRDA regulates the NPS, subscribed by employees of Govt. of India, State Governments and by employees of private institutions/organizations & unorganized sectors. The PFRDA ensures the orderly growth and development of pension market. PFRDA have set up a Trust under the Indian Trusts Act, 1882 to oversee the functions of the Pension Fund Managers (PFMs). The NPS Trust is composed of members representing diverse fields and brings wide range of talent to the regulatory framework. The Union Parliament passed the IPRDA ''Interim Pension Fund Regulatory & Development Authority'' Bill in February 2003 as a Budget Announcement, approved by the then

President of India The president of India (ISO 15919, ISO: ) is the head of state of the Republic of India. The president is the nominal head of the executive, the first citizen of the country, and the commander-in-chief, supreme commander of the Indian Armed ...

, Dr. APJ Abdul Kalam. It was meant to be in place until the final and fool-proof system was prepared, re-approved, and implemented in a way acceptable to all political parties in India, including the opposition. Tamil Nadu became the first state to implement NPS for its newly appointed employees from the financial year 2003–04, under the Chief Ministership of

Jayalalithaa Jayaram Jayalalithaa (24 February 1948 – 5 December 2016), popularly known as Amma, was an Indian actress, politician, and philanthropist who served as the chief minister of Tamil Nadu for more than fourteen years between 1991 and 2016. She ...

. On 19 September 2013, the President,

Pranab Mukherjee Pranab Kumar Mukherjee ( ; born, 11 December 1935 – 31 August 2020) was an Indian statesman who served as the president of India from 2012 until 2017. He was the first person from West Bengal to hold the post of President of India. In a pol ...

, gave his assent to Pension Fund Regulatory and Development Authority Bill of 2013, which was passed in the Monsoon Session of Parliament on 4 September 2013 in the

Lok Sabha The Lok Sabha, also known as the House of the People, is the lower house of Parliament of India which is Bicameralism, bicameral, where the upper house is Rajya Sabha. Member of Parliament, Lok Sabha, Members of the Lok Sabha are elected by a ...

and 6 September 2013 in the

Rajya Sabha Rajya Sabha (Council of States) is the upper house of the Parliament of India and functions as the institutional representation of India’s federal units — the states and union territories.https://rajyasabha.nic.in/ It is a key component o ...

, to make it a Permanent Act. This improved, foolproof and re-approved Bill, with the acceptance of all political parties in India, has replaced the old and imperfect IPRDA Bill of 2003. The President of India is the guardian of the PFRDA, subject to his Financial Emergency Powers, as per the Articles of Indian Constitution. PFRDA now has Full Autonomy & functioning Independently from F.Y. 2014–15.

National Pension System

National Pension System The National Pension System (NPS) is a defined-contribution pension system in India regulated by the Pension Fund Regulatory and Development Authority (PFRDA) which is under the jurisdiction of the Ministry of Finance of the Government o ...

is a defined contributory pensions introduced by

. It is mandatory for all Central Government employees with effect from 1 January 2004. It extends to all citizens of India including workers of the unorganized sector on a voluntary basis with effect from 1 May 2009. On 29 October 2015 the

Reserve Bank of India Reserve Bank of India, abbreviated as RBI, is the central bank of the Republic of India, and regulatory body responsible for regulation of the Indian banking system and Indian rupee, Indian currency. Owned by the Ministry of Finance (India), Min ...

allowed

Non-Resident Indians Overseas Indians (ISO: ), officially Non-Resident Indians (NRIs) and People of Indian Origin (PIOs) are people of Indian descent who reside or originate outside of India (Including those that were directly under the British Raj). According to t ...

(NRI) to subscribe to NPS.

Structure

The Authority consists of a chairperson and not more than six members, of whom at least three shall be whole-time members, to be appointed by the Central Government.

Members

# Shri (Dr.) Deepak Mohanty , Chairperson # Smt. Mamta Shankar, Whole-Time Member (Economics) # Shri Randip Singh Jagpal, Whole-Time Member (Law)

References

{{Reflist

External links

National Pension Scheme FAQs
Financial services in India Regulatory agencies of India Pension regulation Pensions in India 2003 in India