The Hindu Business Line : New pension schemes for Centre, 19 States

THROUGH EXECUTIVE ORDER ROUTE: (From left) Mr. S. K. Jindal, Chairman, Assocham expert committee on investments and investor protection; Mr D. Swarup, Chairman, Pension Fund Regulatory and Development Authority; and Mr. Sanjeev Chanana, Director, Oriental Insurance Co. Ltd. at a seminar in the Capital on Monday. - Ramesh Sharma

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New Delhi Feb. 5 The Pension Fund Regulatory and Development Authority (PFRDA) will implement new pension schemes for the Centre and 19 State Government subscribers and appoint Central Record Keeping Agencies (CRAs) and four fund managers, Dr D. Swarup, Chairman, PFRDA, announced on Monday.

This would be done in the next three months through an executive order route since the PFRDA Bill is getting delayed in Parliament, said Dr Swarup.

Addressing an Assochamporganised seminar, he said that the size of domestic pension business would touch Rs 2 lakh crore in the next couple of years with the new pension schemes in place.

The PFRDA Chairman said that the four pension fund managers would be drawn from public sectors companies including State Bank of India, Punjab National Bank and Life Insurance Corporation, among others.

The PFRDA has already created an initial corpus of Rs 1,500 crore for the new pension fund schemes that will offer returns to their subscribers in the range of 14-29 per cent.

Dr Swarup said that the Finance Ministry has already empowered the regulator through issuance of an executive order to appoint CRAs and Pension Fund Managers to cover Central and 19 State governments' employees under the new schemes for which Letters of Intentions have also been issued.

The date for their response ends on February 6.

He said that in the absence of new pension schemes in place, the total fiscal stress both on Central and State governments for extending pension benefits to their employees would increase to Rs 1,60,000 crore per annum from Rs 75,000 crore.

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