New Delhi, Oct. 10: The government today constituted a five-member interim Pension Fund Regulatory and Development Authority (PFRDA), which will frame the guidelines for a new pension system from January next year.
A resolution has been issued today to operationalise the decision of the government to introduce the new defined contributory pension system, an official release said.
The PFRDA, which will be headed by a chairman and have not more than four members, will be headquartered in Delhi.
The chairman of PFRDA, to be appointed soon, will have the status of a secretary in the government, having experience in economics, finance, legal and administrative matters.
There will be at least two whole-time members who will also be appointed by the government.
The regulator is expected to operationalise the new pension system from January 1, 2004.
The PFRDA will deal with matters relating to promotion and orderly growth of the pension market, the release said.
The regulator would also propose comprehensive legislation for the purpose, it added.
“The PFRDA shall be free to determine its own procedures and will have powers to call for records, returns, notes, memoranda, data or any other material relevant to its working from official and non-official bodies and also hold discussions with them,” it said.
The interim body will periodically report to the government on various aspects of the pension sector and other specific matters as may be called for by the government from time to time.