PFRDA – Comments are invited on PFRDA Regulations 2014 from all concerned

PFRDA – Comments are invited on PFRDA Regulations 2014 from all concerned

DRAFT – Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2014

1. The PFRDA Act was passed by Parliament on Sep/19/2013 and notified on Feb/01/2014. In accordance with section 52 of the Act, the Authority may, by notification make regulation consistent with the Act and rules made thereunder for carrying out the provisions of the Act.

2. “Pension fund” is defined under Section (2) (l) of the Act as “intermediary which has been granted a certificate of registration under sub-section (3) of section 27 by the Authority as a pension fund for receiving contributions, accumulating them and making payments to the subscriber in the manner as may be specified by regulations”.

3. The objective of these Regulations is to standardize and to provide regulatory framework for Pension Fund (PFs) that would provide interalia criteria for registration, capital adequacy, code of conduct, obligation and responsibilities etc. Further, the regulation would ensure an effective procedure for inspection and audit to protect the interests of subscribers.

4. Therefore, in order to safeguard the interest of the subscribers, PFs as an intermediary, through this regulation, are required to adopt high level of standard practices that requires compliance with standards for internal control and operational conduct, with the aim of protecting the NPS assets, proper management of risk and generation of optimum returns.

5. Public comments are invited on the draft regulations on Pension Fund Regulatory and Development Authority (Pension Fund) Regulations, 2014 . All comments from the public will be considered before the regulations are finalized. Comments may be forwarded by email to sumeet.kapoor@pfrda.org.in or may be sent at the under-mentioned address latest by 18th Aug 2014 as per format given below.

Aug 2014 as per format given below:

Name of the Person: Organisation: Designation:
Sr. No.	Pertains to which regulation /Sub-regulation (Regulation No. & Clause No.)	Proposed/suggested changes*	Rationale
1.
2.
3.

Instruction to fill up the format:
1. All letters or emails to clearly specify the name and number of the regulation, sub-regulation and clause. 2. Separate letters/emails to be used for different regulations. 3. Each proposed amendment to be given separately. 4. Each proposed amendment (preferably) not to exceed 200 words*

Your letter(s) can be addressed to:

Ms. Sumeet Kaur Kapoor
General Manager
Pension Fund Regulatory & Development Authority (PFRDA)
1st Floor, ICADR Bldg, Plot No.6
Vasant Kunj Institutional Area, Phase II
New Delhi -110070

Source: www.pfrda.org.in
[http://www.pfrda.org.in/writereaddata/linkimages/Draft%20PF%20Regulations%20Letter1.pdf]

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PFRDA Circulars – Option to defer Annuity purchase under NPS at the time of exit

PFRDA Circulars – Option to defer Annuity purchase under NPS at the time of exit

CIRCULAR
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/ 2013/14/ PDEX /9 September 17, 2013

To,
All Govt depts./PAO’s/DDO/ POP’s, CRA & other stakeholders
Dear Sir/ Madam,

Sub: Option to defer Annuity purchase under NPS at the time of exit
As per the Exit guidelines of PFRDA for National Pension System (NPS) subscribers, a subscriber on attaining the Normal Retirement Age (applicable to Govt. sector subscribers) or upon attaining 60 years – is required to compulsorily annuitize at least 40% of your pension wealth and the remaining 60% can be withdrawn as a lump sum.

Also, a subscriber wishing to exit from NPS before the normal retirement age or before attainment of 60 years is allowed to exit subject to the condition that a minimum of 80% of accumulated pension wealth needs to be mandatorily utilized for purchase of annuity that provides for the monthly pension to the subscriber.
Presently, withdrawal of permissible lump sum withdrawal (60%) upon exit can be deferred by the subscriber to a later date but not beyond attaining 70 years of age. This is to take care of the reasons like unfavorable Market conditions or there being no requirement of the funds at that particular time.

Due to the upheavals in the market conditions including the bond market and the swings in NAV’s of the debt funds including NPS in the recent past, feedback has been received from various stakeholders that the subscribers be given an option to defer or time the annuity purchase (subject to a minimum of 40%/80% of accumulated pension wealth as applicable) akin to the deferment option for the lump sum withdrawal that is permitted currently under NPS.

PFRDA after examining the issued has approved the “Deferment option” for the annuity purchase at the time of exit from NPS with condition that such deferment can be for a maximum period of 3 years. One can initiate the annuity purchase option at any time before lapse of 3 years from the date of such deferment, by giving an application or notice to the Central Record Keeping Agency.

If no such notice is given before the lapse of 3 years from such date of deferment, the percentage of accumulated pension wealth as provided by the subscriber in the NPS withdrawal application form (subject to a minimum of 40%/80% of accumulated pension wealth as applicable) for purchase of annuity would be automatically monetized and such amount would not earn any investment income or interest to the subscriber thereafter.

This is for the information of all concerned. The circular has also been placed on PFRDA website at http://www.pfrda.org.in and CRA website at http://www.npscra.nsdl.co.in.

Yours faithfully,
Sd/-
Venkateswarlu Peri
General Manager

Source: www.pfrda.org.in
[http://pfrda.org.in/writereaddata/linkimages/Annuity%20Purchase%20at%20exit2395121277.pdf]

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PFRDA Circulars : Circular on Swavalamban Subscriber Registration through Aggregators Only

PFRDA Circulars : Circular on Swavalamban Subscriber Registration through Aggregators Only

CIRCULAR

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/ 2013/15/POP/1 September 17, 2013

To,
All POP’s, Aggregators, CRA & other stakeholders
Dear Sir/ Madam,

Sub: Subscriber registration under NPS – NPS-Swavalamban

Presently Swavalamban Scheme subscribers can be registered either through Aggregators or through Points of Presence (POPs). In order to streamline the system to cater to the Swavalamban scheme objectives, it has been decided that with effect from 01/10/2013, registration of NPS-Swavalamban subscribers would be allowed only through aggregators on the NPS-Lite platform. In effect, no new NPS- Swavalamban subscriber registration would be allowed through POP’s on the all citizen model (UOS) on or after 01/10/2013.

All those POP’s who have registered NPS-Swavalamban accounts on the all citizen model(UOS) of NPS earlier would be provided a period of 3 months starting from 01/10/2013 to approach PFRDA for become aggregator by duly submitting the required documentation so that they can move their existing NPS-Swavalamban accounts to the NPS-Lite platform as an aggregator. However, post the 3 month window provided, if there is no satisfactory action on part of the POP, the subscribers would be asked to choose one of the existing aggregators for subscriber maintenance activities.

This is for the information of all concerned. The circular has also been placed on PFRDA website at http://www.pfrda.org.in and CRA website at http://www.npscra.nsdl.co.in.

Yours faithfully,
Sd/-
Venkateswarlu Peri
General Manager

Source: www.pfrda.org.in
[http://pfrda.org.in/writereaddata/linkimages/Swavalamban%20Subscriber%20registration1143946313.pdf]

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