Cabinet to decide on new pension fund

The Cabinet on Wednesday will consider key changes in the proposed Pension Fund Regulatory and Development Authority Bill which aims at providing assured returns to investors and a cap of 26% on foreign direct investment.

The Cabinet on Wednesday will consider key changes in the proposed Pension Fund Regulatory and Development Authority Bill which aims at providing assured returns to investors and a cap of 26% on foreign direct investment.

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A parliamentary Standing Committee on finance headed by Yashwant Sinha has made these recommendations and said the assured returns should be equal to interest on Employee Provident Fund Scheme.

No pension fund management company in India currently offers a guaranteed pension product.

The government had accepted these recommendations and a new draft of the bill is expected to be discussed in the Cabinet.