The Pension Fund Regulatory and Development Authority (PFRDA) is a statutory body established in 2003 under the Pension Fund Regulatory and Development Authority Act, 2013. It is responsible for regulating and promoting pension schemes in India. Here is a detailed note on the functions and responsibilities of PFRDA:
- Regulating Pension Schemes:
PFRDA is responsible for regulating pension schemes in India, including the National Pension System (NPS) and Atal Pension Yojana (APY). PFRDA sets rules and guidelines for the functioning of pension funds, custodians, and other entities involved in the pension system. It also monitors the performance and compliance of these entities.
- Promoting Pension Schemes:
PFRDA promotes the use of pension schemes by educating people about the benefits of saving for retirement. It also encourages employers to offer pension schemes to their employees. PFRDA works closely with other government agencies and financial institutions to promote pension schemes in India.
- Registration and Monitoring of Pension Fund Managers:
PFRDA registers and monitors pension fund managers (PFMs) who manage the pension assets of subscribers. PFRDA sets eligibility criteria for PFMs and monitors their performance and compliance with regulatory norms.
- Protection of Subscriber Interests:
PFRDA is responsible for protecting the interests of subscribers to pension schemes. It ensures that PFMs act in the best interests of subscribers and follow the rules and guidelines set by PFRDA. PFRDA also investigates complaints and takes action against PFMs who violate regulatory norms or engage in fraudulent activities.
- Facilitating Interoperability:
PFRDA facilitates interoperability between different pension schemes. It allows subscribers to transfer their pension accounts from one scheme to another and also allows them to switch between different PFMs.
- Research and Analysis:
PFRDA conducts research and analysis on various aspects of the pension industry, including market trends, product development, and subscriber behavior. It also publishes various reports, such as the Annual Report and the Handbook on Indian Pension Statistics.
Conclusion:
PFRDA plays a crucial role in regulating and promoting pension schemes in India. PFRDA’s functions and responsibilities include regulating and promoting pension schemes, registering and monitoring pension fund managers, protecting the interests of subscribers, facilitating interoperability, conducting research and analysis, and educating consumers. PFRDA is an essential institution for the functioning of the pension industry in India and plays a crucial role in ensuring the stability and growth of the pension sector.