by The Pension Fund Regulatory and Development Authority (PFRDA) is a regulatory body established by the Government of India in 2003 to promote, regulate, and develop the pension sector in India. The PFRDA is responsible for regulating and supervising pension funds and schemes in India, including the National Pension System (NPS), which is a defined contribution pension scheme for Indian citizens.
PFRDA History
The Pension Fund Regulatory and Development Authority (PFRDA) was established by the Government of India on August 23, 2003, through the PFRDA Act, 2013. The PFRDA Act was enacted with the objective of regulating and developing the pension sector in India.
The PFRDA was set up as a statutory body under the Ministry of Finance, with the mandate to promote, regulate and develop the pension sector in India. The authority was established with a view to developing a sustainable pension system in India that would help to provide income security for individuals after retirement.
The PFRDA’s primary task was to set up and regulate a new pension system in India, called the National Pension System (NPS). The NPS is a defined contribution pension system that provides retirement benefits to individuals based on the contributions made by them and their employers during their working life.
The PFRDA has since played a significant role in the development of the pension sector in India. It has been instrumental in promoting pension coverage and awareness among Indian citizens and has facilitated the creation of new pension products and services.
Over the years, the PFRDA has taken several measures to improve the functioning of the pension sector in India. It has introduced new rules and regulations to govern pension funds and schemes, and has worked towards enhancing the transparency and accountability of pension funds.
Functions of the PFRDA:
- Regulating Pension Funds: The PFRDA regulates and supervises pension funds and schemes in India, including the NPS. It sets guidelines for pension fund management, investment practices, and customer service standards.
- Registration and Authorization: The PFRDA is responsible for registering and authorizing pension funds and schemes in India. It ensures that all pension funds comply with regulatory guidelines and operate in a fair and transparent manner.
- Promoting Pension Coverage: The PFRDA works towards promoting pension coverage among Indian citizens. It encourages individuals to enroll in pension schemes and facilitates the creation of new pension products and services.
- Protecting Pensioner’s Interests: The PFRDA is responsible for protecting the interests of pensioners in India. It investigates complaints against pension funds and schemes and takes action against those that violate regulations or engage in unethical practices.
- Educating and Raising Awareness: The PFRDA promotes education and awareness about pension schemes among Indian citizens. It provides information on pension products and services and helps individuals make informed decisions about their retirement planning.
PFRDA Scope and Role
- Regulating Pension Funds: The PFRDA is responsible for regulating and supervising pension funds and schemes in India, including the National Pension System (NPS). It sets guidelines for pension fund management, investment practices, and customer service standards.
- Authorizing Pension Funds: The PFRDA is responsible for registering and authorizing pension funds and schemes in India. It ensures that all pension funds comply with regulatory guidelines and operate in a fair and transparent manner.
- Developing Pension Products: The PFRDA is responsible for developing new pension products and services that are suitable for different sections of the society. It encourages the creation of innovative pension products that cater to the needs of specific groups such as the self-employed, farmers, and unorganized workers.
- Promoting Pension Coverage: The PFRDA works towards promoting pension coverage among Indian citizens. It encourages individuals to enroll in pension schemes and facilitates the creation of new pension products and services.
- Educating and Raising Awareness: The PFRDA promotes education and awareness about pension schemes among Indian citizens. It provides information on pension products and services and helps individuals make informed decisions about their retirement planning.
- Monitoring Pension Funds: The PFRDA monitors the performance of pension funds and schemes in India. It ensures that they comply with regulatory guidelines and operate in the best interests of their customers.
- Protecting Pensioner’s Interests: The PFRDA is responsible for protecting the interests of pensioners in India. It investigates complaints against pension funds and schemes and takes action against those that violate regulations or engage in unethical practices.
