The Lok Sabha on Wednesday passed long-pending the Pension Fund Regulatory and Development Authority (PFRDA) Bill 2011 with official amendments, which aims to create a regulator for the pension sector and extend the coverage of pension benefits to more people.
Hanging in balance since 2005, the Bill opens window of opportunity for foreign investment in the sector. IT proposes 26 per cent foreign investment in the Pension sector and also gives statutory backing to the interim pension authority that had been functioning on executive authority for over a decade now.
The legislation seeks to make the Pension Fund Regulatory and Development Authority (PFRDA) a statutory authority to regulate the New Pension System (NPS).
This Bill would also provide subscribers a wide choice to invest their funds including for assured returns by opting for Government Bonds etc. as well as in other funds depending on their capacity to take risk.
Finance Minister P. Chidambaram informed Parliament that 26 states have joined NPS and it would help extend pension benefits more people.
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