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Pension regulator PFRDA plans to engage a strategic management consultant to study and make recommendations in critical areas including organisational structure and segregation of roles and responsibilities of NPS Trust.
Human resource and technological requirements are also areas that the proposed management consultant will be required to make recommendations, according to the Expression of Interest (EoI) invited from consultants.
It maybe recalled that Pension Fund Regulatory and Development Authority (PFRDA) had undertaken the exercise of organisational restructuring in 2017 itself. However, with the proposed changes in the legal framework governing the functions of PFRDA (a Bill is expected in the next session), it has been decided to re-assess the organisational structure in terms of its suitability, effectiveness and its role in meeting the mandate given by the PFRDA Act, 2013.
In the Budget 2019-20, the government had proposed separation of the NPS Trust from PFRDA to address issues over conflict of interest. Finance Minister Nirmala Sitaraman had said in her Budget speech that steps will be taken to separate the NPS Trust from PFRDA with appropriate organisational structure and to maintain an arm’s length relationship between the NPS Trust and the PFRDA.
NPS Trust
The proposed consultant, expected to complete the study in two months, will have to examine the role and responsibility of NPS Trust as envisaged in the PFRDA Act, 2013 (including the proposed amendment), PFRDA (NPS Trust) Regulations, Guidelines, Trust Deed for identification of gap and overlapping of functions, if any.
The consultancy firm, which should have minimum experience of ten years, will also be required to examine the inter-linkage between PFRDA and NPS Trust in their roles and responsibility. The consultancy firm will have to identify/demarcate the roles and responsibility of NPS Trust and recommend suitable amendments in regulations/guidelines/Trust deed to implement the demarcated role.
Technology resources
The firm will be tasked to suggest action needed for capacity building in terms of technological resources for meeting the current and future requirements. A suitable roadmap for IT implementation and investment must also be provided by the consultancy firm, PFRDA has said.
The consultancy firm will be required to provide inputs on relevant best global practices and usage of technology used by other financial regulators in India and abroad for carrying out surveillance systems, investigations, feedback systems and investor education.
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