Interim pension regulator PFRDA is working on a separate fund management guideline for corporates, a move that will allow them to enter into agreement with fund managers for managing the pension fund of their employees.
“The roadmap on the corpus management would be announced in the next three to four months,” an official of the interim Pension Fund Regulatory and Development Authority (PFRDA) told PTI.
The authority has decided to work out a separate guideline for management of funds of employees of corporates and other entities, following request by large employers like the Indian Banks’ Association and the State Bank of India.
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The country’s largest lender State Bank of India (SBI) has approached the pension regulator for management of the retirement money of its employees.
Similarly, IBA has shown interest in joining the New Pension System for the banks’ new recruits.
Moreover, some self-help groups and one or two PSUs have also approached PFRDA for the management of their corpus.
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“Discussion with them is on but no concrete decision has been taken so far,” the official added.
New Pension System (NPS) was implemented for government employees who joined service on or after 1 January 2004. On May one this year, it was extended to all citizens.
There are six fund managers for all citizens’ scheme-IDFC Mutual Fund, Kotak Mahindra, SBI, UTI Asset Management, ICICI Prudential Life Insurance and Reliance MF-to manage the corpus of customers.
Besides, there are 21 Points of Presence (PoPs) of NPS, which include, State Bank of India, ICICI Bank, IDBI Bank, Oriental Bank of Commerce, Axis Bank and Union Bank of India.
PoPs are contact and collection points for customers wanting to be part of NPS.
However, PFRDA is unhappy with the way the New Pension System activities have been carried out so far by the PoPs and would meet them on August 26 to ask them to get their act right.