The Union cabinet on Thursday approved the Pension Fund Regulatory and Development Authority (PFRDA) Bill paving the way for a setting up a regulator for the pension sector through an Act of Parliament.
PFRDA, set up as a regulatory body for pension sector, is yet to get statutory powers as the Bill pertaining to that effect lapsed in Parliament with the dissolution of the last Lok Sabha in 2009.
Interim PFRDA is functioning since 2003 through an executive order. PFRDA's New Pension System (NPS) was introduced by the government and made mandatory for all new recruits to the government except armed forces with effect from January 1, 2004.
NPS was opened to all citizens of India from May 1, 2009 on voluntary basis.
As many as 27 states governments have notified and joined the NPS for their employees.
As of now, the subscriber base for the mandatory government sector crossed 1.1 million with corpus approaching Rs 7,000 crore.
The Economic Survey has made a strong case for reforms in the pension sector arguing for early passage of the PFRDA Bill.
The Cabinet also approved the State Bank of India (Amendment) Bill that will enable the bank to issue of preference shares to raise resources from the market. The Bill also aims to provide for flexibility in the management of the bank.
Amendment to organ transplant law
The government also cleared amendments to the organ transplant law that legalises swapping of vital organs between willing but incompatible donors.
This would enable such relatives to donate their organ to a compatible patient and, in turn, get an organ that is compatible with the patients related to them.