The Pension Fund Regulatory and Development Authority (PFRDA) has finally zeroed in on six fund houses UTI Mutual Fund,IDFC,Reliance,SBI,ICICI Prudential and Kotak Mahindra Mutual Fund that will manage the pension money of the private-sector citizens. We have identified six fund houses to manage the pension money for the private sector. Among these,UTI Mutual Fund made the best bid at 0.09 basis points, said PFRDA chairman D Swarup.
With UTI Mutual Fund making the lowest bid,the other players will now have to match this figure to qualify as fund mangers. They will be appointed for three years after the board approval.
The pension fund regulator had last month invited expressions of interest for managing pension funds for the private sector. Around 21 companies are learnt to have submitted the applications.
On the investment guidelines,the regulator is still awaiting the Deepak Parekh Committee report. The report will lay out guidelines for investment of the pension money collected by PFRDA. We expect the report by the end of this week, said Swarup.
The regulator has affirmed it will be able to open the new pension system for general public on the scheduled date,ie April 1,2009.
As of now,the new pension system is open only for the central and state government employees (excluding armed forces) with effect from January 1,2004. Three fund managers UTI,SBI and LIC took charge in April last year and manage the pension money collected so far. While UTI and SBI have emerged as the lowest bidders for the private sector as well,LIC will continue to work only for the public sector funds.