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The Centre has appointed Rahul Singh, Joint Secretary in the Department of Personnel & Training (DoPT) as part-time member of the Pension Fund Regulatory & Development Authority (PFRDA), which is the pension regulator.
With this move, all the three posts of Part-time Members in PFRDA Board has been filled up. It maybe recalled that Centre had in May this year appointed Pankaj Sharma, Joint Secretary in Department of Financial Services (DFS) as a Part-time Member. Anne George Matthew, Additional Secretary in Finance Ministry is the other part-time member in PFRDA Board.
Pension regulator PFRDA has a Chairman besides three whole-time members and three part-time members.
Of the three whole-time members, the posts of two members — Law and Economics— had fallen vacant on May 31 this year. The Finance Ministry has already invited applications for these two posts.
Pension AUM
India’s pension assets under management (AUM) are growing at a robust pace of about 27-30 per cent Compounded Annual Growth Rate (CAGR) and are expected to touch ₹ 30 lakh crore by 2030.
In 2021-22, Pension AUM grew a robust 27.43 per cent at ₹7.37 lakh crore as against ₹ 5.78 lakh crore in 2020-21.
PFRDA (Amendment) bill unlikely anytime soon
Meanwhile, the much awaited PFRDA (amendment) Bill to pave the way for separation of PFRDA and NPS Trust is not likely to be taken up in the upcoming Monsoon session of Parliament. This Bill is not forming part of the 24 Bills that have been listed by the government for legislative action in the Monsoon Session.
The PFRDA is also awaiting amendment to the PFRDA Act as regards the regulation of superannuation funds. PFRDA was looking for a provision that allowed superannuation funds to be regulated only by the pension regulator.
With no indications of the PFRDA (amendment) Bill being taken up in the Monsoon session, the legislative backing for separation of NPS Trust and PFRDA may not be a reality anytime soon, say Pension industry observers.
It maybe recalled that Finance Minister Nirmala Sitharaman had in her budget speech announced intent to separate the NPS Trust from the PFRDA with appropriate organisational structure, keeping in view the wider interest of the subscribers and to maintain arm’s length relationship of the NPS Trust with the regulator.
PFRDA had established the NPS Trust for taking care of the assets and funds under NPS. The proposal to separate the two job roles has been under the consideration of the government for last several years now.
The National Pension System (NPS) was introduced by the government to replace the defined benefit pension system. NPS was made mandatory for all new recruits to the central government service from January 1, 2004, (except the armed forces in the first stage) and has also been rolled out for all citizens with effect from May 1, 2009, on voluntary basis.
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