Panel to submit report on common regulator for pension products
13 August 2016
A committee set up by the government to look into the issue of bringing all pension products under one common regulator – the Pension Funds Regulatory and Development Authority (PFRDA), is expected to submit its report soon.
The panel was set up after the Pension Fund Regulatory and Development Authority (PFRDA) urged the government to bring all such products under it.
Apart from PFRDA, the panel has members from other regulators like Sebi, Irdai and EPFO, reports quoting a top official of the pension watchdog said.
At present, pension products are being regulated by multiple financial regulators like PFRDA, Sebi, Irdai and EPFO.
"A proposal has been already put to the government to have a single regulator for all kinds of pension products in the country.
"The government has set up a committee to discuss the issue. The committee is likely to give its recommendation shortly," PFRDA Chairman Hemant Contractor told reporters on the sidelines of a CII event here.
PFRDA has also asked the government to allow private sector fund managers to manage pension funds for government employees and it is hopeful of getting the government's nod in a month's time.
At present, only the three state-owned fund managers are managing such funds, he said.
Moreover, the board of PFRDA has already approved increasing equity exposure in the National Pension System (NPS) to 75 per cent from below 50 per cent at present, Contractor said.
Regarding Atal Pension Yojana (APY), he said rural populace is coming forward and opting for the government-sponsored plan.
"At present, 52 per cent of subscribers under APY comprise rural folks, which was not the case a year ago when the scheme was launched.
"This has become possible only when the regional rural banks and post offices joined the distribution channel for the scheme," he said.
Total accumulation of funds under APY currently stands at Rs900 crore, he said.
Except for West Bengal and Tripura, all states have agreed to implement the APY scheme for their employees, Contractor said, adding that PFRDA is in talks with these two states for the same.