Pension Fund Regulatory and Development Authority (PFRDA) notifies a series of Amendments | Current Affairs | Vision IAS
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  • Amendments are in line with the Union Budget 2023-24 announcements to review regulations to reduce the cost of compliance and enhance the ease of doing business.
    • Also, Amendments will enhance transparency in whole ecosystem. 

 

  • Key Reforms: 
    • National Pension System (NPS) Trust: Strengthened provisions related to appointment of Trustees, their terms and conditions, holding of meetings of Board of Trustees and appointment of CEO.
      • NPS was introduced by the Union Government in 2004 to help the individuals have income in the form of pension.
    • Pension Fund: Brought under the ambit of the Prevention of Money Laundering Act (PMLA), 2002. 
      • Constitution of additional Board committees by Pension Funds such as Audit Committee and Nomination & Remuneration Committee.
      •  Aims to improve governance in line with Companies Act, 2013 and enhanced disclosure by Pension Funds.
    • Trustee Bank (TB): When TB proposes to change its status or constitution, it shall obtain prior approval of the PFRDA.
    • Central Recordkeeping Agency (CRA): Implementation of fraud prevention and mitigation policy by CRA to protect the interest of subscribers.
      • Introduced criteria of fit and proper person, similar to SEBI’s initiative.

 

About PFRDA

  • Statutory body established under PFRDA Act, 2013.
  • Objective is to promote old age income security by establishing, developing and regulating pension funds.
  • Works under Ministry of Finance.
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