PFRDA invites fresh bids for managing funds under NPS

The pension regulator will appoint 10 pension fund managers (PFMs), including at least one government-owned company, for five years.

By: ENS Economic Bureau | New Delhi | Published:September 19, 2016 12:19 am
PFRDA managing NPS pension fund, bidding, trustee bank, funds transfer, business news The existing pension fund managers can also bid to manage the private sector NPS corpus of about Rs 11,000 crore.

The Pension Fund Regulatory and Development Authority (PFRDA) has invited fresh bids for managing funds under the National Pension System (NPS) for the private sector subscribers who will now have more choice.

The pension regulator will appoint 10 pension fund managers (PFMs), including at least one government-owned company, for five years.

Currently, there are eight Pension Funds (PFs) for private sector: HDFC Pension Management, ICICI Prudential Pension Fund Management, Kotak Mahindra Pension Fund, LIC Pension Fund, Reliance Capital Pension Fund, SBI Pension Funds, UTI Retirement Solutions and Birla Sun Life Pension Management.

The existing pension fund managers can also bid to manage the private sector NPS corpus of about Rs 11,000 crore.

The PFRDA has put a ceiling on fund management charges at 10 basis point (bp) per annum, an improvement as compared to 1 bp charged by the existing players under the private sector NPS.

The Request For Proposal (RFP) document was released on Saturday and pension funds have been given time till October 17 to submit their bids.

Given the small corpus size of the private sector NPS, pension funds have been demanding a pie in the management of about Rs 95,000 crore of subscribers’ money in the government sector.

The government sector NPS is currently managed by three public sector PFMs — LIC Pension Fund, SBI Pension Funds and UTI Retirement Solutions.

The National Pension System (NPS) is a voluntary defined contribution pension system which is aimed at creating a pensioned society in the country. FE