Centre concedes demands of BJP on Pensions Bill

Conceding the BJPs demands on the Pensions Bill,the government has agreed to incorporate key suggestions of the Standing Committee of Finance in the Bill,including a cap on FDI limit through the legislative route and evolving a mechanism on minimum assured returns.

Official amendments to the Bill are likely to be moved at a meeting of the Union Cabinet on Thursday,with government sources indicating that among changes is a provision that will allow increase or decrease in FDI content only via approval of Parliament and not through an executive decision. The amendments will also address the other BJP demand that a mechanism be evolved to ensure that minimum assured returns are be at par with that of the EPF scheme.

An attempt to push ahead with the PFRDA (Pension Fund Regulatory and Development Authority) Bill had to be abandoned last month during the Budget Session after the BJP made it clear that it would not back the legislation unless the suggestions of the standing committee were taken into account. The committee is headed by BJP leader Yashwant Sinha.

The BJPs support is critical as the Bill among the slew of measures pitched at reforming the financial sector is not only opposed by Left parties but even the Trinamool Congress,the second largest ally in the UPA.