PFRDA to issue norms for managing corporates' pension funds
Interim pension regulator PFRDA will now devise ways for fund management of corporates after the country's largest lender SBI and Himachal Road Transport Corporation approached the interim regulator.business Updated: Nov 08, 2009 11:17 IST
Interim pension regulator PFRDA will now devise ways for fund management of corporates after the country's largest lender SBI and Himachal Road Transport Corporation approached the interim regulator.
"We are working on investment norms for managing the pension fund of companies. It would be announced in a month's time," a senior Pension Fund Regulatory and Development Authority (PFRDA) official told PTI.
At present, PFRDA regulates the new pension system for government employees as well as all citizens and issues norms for managing these funds.
The move would extend the role of the regulator from being manager of individual pension plans under the New Pension System to manage pension corpus of corporates.
The official further said that the investment norms would largely be like the guidelines for the individual pension plans. However, these companies would be asked for some more requirements as it is mainly for the pension corpus.
For individual pension scheme, PFRDA has given various options to holders to allocate funds to equity indices, corporate papers and government securities.
In September, the PFRDA board approved a proposal for managing the pension funds of companies.
The move came after large employers like the State Bank of India and Himachal Road Transport Corporation approached the regulator to work out a separate fund management guideline for their employees.