Govt forms interim pension regulator

The government on Friday constituted a five-member interim Pension Fund Regulatory and Development Authority (PFRDA). The pension regulator would come up with guidelines for a new pension system from January 2004.

According to an official release, a resolution has been issued to operationalise the decision of the government to introduce the new defined contributory pension system. The PFRDA, which would be headed by a chairman and would have not more than four members, would be headquartered in Delhi. The chairman of PFRDA, who would be appointed soon, would be of the status not less than that of a secretary in the government and having experience in economics, finance, legal and administrative matters. There would be at least two whole-time members who would also be appointed by the government.

The regulator is expected to operationalise the new pension system from January one, 2004. The PFRDA would deal with matters relating to promotion and orderly growth of pension market, the release added. The regulator would also propose comprehensive legislation for the purpose, it added.

“The PFRDA shall be free to determine its own procedures and would have powers to call for records, returns, notes, memoranda, data or any other material relevant to its working from official and non-official bodies and also hold discussions with them,” the release said.