About the PFRDA
The Pension Fund Regulatory and Development Authority (PFRDA) is a statutory regulatory body established under the PFRDA Act, 2013 to promote old-age income security by regulating pension funds, developing the pension sector and protecting the interests of pension subscribers.
- Nature: It is a Statutory regulatory authority.
- Headquarters: New Delhi.
Composition
· The PFRDA consists of a Chairperson, three whole-time members and three part-time members, who are appointed by the Central Government. The members are selected from persons having expertise and experience in fields such as economics, finance and law.
Pension Advisory Committee
· The Pension Advisory Committee (PAC) is constituted under Section 45 of the PFRDA Act, 2013 and consists of representatives of employees, subscribers, commerce and industry, intermediaries and organisations involved in pension research. It advises the PFRDA on regulations and other matters referred to it by the Authority, thereby providing a mechanism for stakeholder participation in pension-sector regulation.
Functions of PFRDA
· Regulation of Pension Funds: PFRDA regulates pension funds and pension-sector intermediaries to ensure their efficient and transparent functioning.
· Protection of Subscribers: It protects the interests of pension subscribers by promoting transparency, efficiency, fairness and responsible management of pension assets.
· Regulation of Pension Schemes: PFRDA regulates pension schemes falling within its statutory framework, including the National Pension System (NPS) and other notified pension schemes.
· Regulation of Intermediaries: It registers and regulates various intermediaries involved in the pension ecosystem, including pension funds, Central Recordkeeping Agencies and Points of Presence.
· Promotion of Pension Coverage: PFRDA promotes the development and wider coverage of an organised pension system to strengthen old-age income security.
· Regulation of Investment: It prescribes investment guidelines and safeguards for the management and investment of pension assets.
· Grievance Redressal: PFRDA establishes mechanisms for the redressal of grievances and protection of subscriber rights.
· Regulation-Making: It makes regulations necessary for implementing the provisions and objectives of the PFRDA Act, 2013.
Schemes Regulated by PFRDA
· National Pension System (NPS): The National Pension System (NPS) is a defined-contribution pension system under which subscribers make regular contributions to build a retirement corpus. PFRDA regulates the NPS framework, pension funds and intermediaries associated with the system.
· Atal Pension Yojana (APY): The Atal Pension Yojana (APY) is a government-backed pension scheme primarily aimed at providing old-age income security to workers, particularly those in the unorganised sector.
· NPS Vatsalya: NPS Vatsalya is a pension-oriented scheme designed for minors, under which contributions can be made on their behalf to build long-term financial security.
· Unified Pension Scheme (UPS): The Unified Pension Scheme (UPS) provides an assured-pension framework for eligible Central Government employees and operates within the pension regulatory framework administered by PFRDA.
FAQs
1. What is PFRDA?
Ans: The Pension Fund Regulatory and Development Authority (PFRDA) is a statutory regulatory authority established under the PFRDA Act, 2013 to regulate and develop the pension sector and protect the interests of pension subscribers.
2. What is the composition of PFRDA?
Ans: PFRDA consists of a Chairperson, three whole-time members and three part-time members, who are appointed by the Central Government.
3. What is the Pension Advisory Committee?
Ans: The Pension Advisory Committee, constituted under Section 45 of the PFRDA Act, 2013, advises PFRDA on regulations and other matters referred to it by the Authority while providing a mechanism for stakeholder participation.
4. Which major pension schemes are regulated by PFRDA?
Ans: PFRDA regulates major pension schemes such as the National Pension System (NPS), Atal Pension Yojana (APY), NPS Vatsalya and Unified Pension Scheme (UPS).
5. What are the major functions of PFRDA?
Ans: PFRDA regulates pension funds and intermediaries, protects subscriber interests, promotes pension coverage, regulates investment of pension assets and establishes mechanisms for grievance redressal.
