Pension Fund Regulatory and Development Authority (PFRDA) Bill-2011
The Pension Fund Regulatory and Development Authority Bill, 2005 was initially introduced in Lok Sabha in March, 2005 to provide for a statutory PFRDA. However, since the Bill and the official amendments, based on the recommendations of the Standing Committee on Finance, could not be considered by the Lok Sabha, the Bill lapsed on dissolution of the 14th Lok Sabha.
The Government has announced in the Budget 2011-12 that the revised PFRDA Bill would be moved in the Parliament. Accordingly, PFRDA Bill, 2011 was introduced in Lok Sabha on the 24th March, 2011 to provide for a statutory regulatory body the Pension Fund Regulatory and Development Authority (PFRDA) under the provisions of the Bill. The legislation sought to empower PFRDA to regulate the New Pension System (NPS). The PFRDA Bill, 2011 was referred to the Standing Committee on Finance on the 29th March, 2011 for examination and report thereon. The Standing Committee on Finance gave its Report on 30th August, 2011.
The Government decided to accept the recommendations of the Standing Committee on Finance. Based on the recommendations of the Standing Committee, the official amendments to the PFRDA Bill-2011 a proposal to move these additional official amendments in the ensuing session of the Parliament, was approved by the Union Cabinet in its meeting held on 4th October, 2012.
The PFRDA Bill, 2011, inter alia, provides for:
(i) Establishing a statutory Pension Fund Regulatory and Development Authority (PFRDA):
(a) to promote old age income security by establishing, developing and regulating pension funds;
(b) to protect the interests of subscribers to various schemes of pension funds.
(ii) Empowering PFRDA to :
(a) regulate the New Pension System and other pension schemes not covered under any other Act;
(b) register and regulate pension funds and the central recordkeeping agency;
(c) frame investment guidelines for pension funds;
(d) levy monetary penalties for violations of various provisions of the PFRDA Act;
(iii) Imprisonment upto 10 years by courts for contravention of the PFRDA Act, etc. or fine upto Rs. 25 crore or both; and
(iv) Subjecting subordinate legislation to Parliamentary scrutiny.