Pension regulator PFRDA has issued drafts for two key regulations — pension fund and National Pension System Trust. These draft regulations come on top of five other draft regulations issued by the regulator since May this year.

“The latest two draft regulations — pension fund and pension trust — will be the key pillars of our NPS architecture”, RV Verma, officiating Chairman of PFRDA told Business Line . These two regulations, when finally notified after receiving stakeholder feedback, will help bring more players into the Indian pension industry and make it more robust as well as sustainable, he said.

The draft regulations on National Pension System Trust are crucial as they set out the role and responsibilities of various intermediaries being overseen by the trust. The pension trust will be the operational arm of the PFRDA, it was pointed out.

The pension regulator has given a timeframe of one month for stakeholders and the public to give their responses for the draft regulations on pension funds and pension trusts. The draft regulation on pension funds sets out the criteria for registration, capital adequacy, code of conduct, obligation and responsibilities.

It also provides for an effective procedure for inspection and audit to protect the interests of subscribers. This is the first time since PFRDA got statutory backing last year that regulations are being issued for pension fund managers and pension trusts. Already, the PFRDA had issued draft regulations for points of presence, aggregators, grievance redressal, and a subscribers’ education and protection fund.

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