Pension Fund RegulatoryDevelopment Authority (PFRDA)
WHAT IS PENSION & PFRDAPension is a form of Social Security/ Insurance in the form of Monthly payments paid to the citizens on attaining the age of retirement to take care of day to day living expenses .PFRDA was established by the Government of India to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds
• PFRDA was established by Government of India on 23rd August, 2003.• The Government has mandated PFRDA to act as a regulator for the pension sector in India.• PFRDA also intends to intensify its effort towards financial education and awareness as a part of its strategy to protect the interest of the subscribers.
• The New Pension System reflects Government’s effort to find sustainable solutions to the problem of providing adequate retirement income.• The NPS has been designed to enable the subscriber to make optimum decisions regarding his/her future and provide for his/her old-age through systemic savings from the day he/she starts his/her employment.
• PFRDA’s efforts are an important milestone in the development of a sustainable and efficient voluntary defined contribution based pension system in India.
What is the role of PFRDA in NPS?• PFRDA, the regulator for the NPS, is responsible for registration of various intermediaries in the system such as Central Record Keeping Agency (CRA), Pension Funds, Custodians, NPS Trustee Bank, etc.• PFRDA shall also monitor the performance of the various intermediaries and has a significant role to play in safeguarding the interest of subscribers.• It will regulate the manner in which subscriber contributions are invested by PF(s) and will make all efforts to ensure fair play for subscribers.