PFRDA notifies simplified rules for Pension Funds, NPS Trust
PFRDA New Rule for NPS: Fund (Amendment) Regulations 2023 have been notified on February 5 and February 9 respectively.
PFRDA New Rule for NPS: The Pension Fund Regulatory and Development Authority (PFRDA) has notified the amendments to the regulations of the National Pension System Trust and the Pension Fund to reduce the cost of compliance and enhance the ease of doing business. As per the official statement issued on Wednesday the National Pension System Trust (Second Amendment) Regulations 2023 and Pension
Fund (Amendment) Regulations 2023 have been notified on February 5 and February 9 respectively. The amendments to NPS Trust Regulations simplify the provisions related to the appointment of Trustees, their terms and conditions, the holding of meetings of the Board of Trustees and the appointment of CEO - NPS Trust.
Amendments to Pension Fund Regulations simplify the provisions related to the governance of Pension Funds in line with the Companies Act, 2013 and enhanced disclosure by Pension Funds.
The other amendments include:
*Clarity of roles of Sponsor of Pension Fund & Pension Fund along with compliance to 'fit and proper person' criteria.
*Constitution of additional Board committees by Pension Funds such as Audit Committee and Nomination & Remuneration Committee.
*Inclusion of name 'Pension Fund' in name clause and requirement of existing pension fund(s) to comply with this provision within a period of 12 months.
*The annual report of schemes managed by the pension fund to include Directors' responsibility statement.
Detailed information on the amended regulations is available on the PFRDA website:
NPS Trust: https://www.pfrda.org.in/myauth/admin/showimg.cshtml?ID=2883
Pension Fund: https://www.pfrda.org.in/myauth/admin/showimg.cshtml?ID=2891
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