PFRDA full form is Pension Fund Regulatory and Development Authority and was created in 2003 with the goal of promoting, regulating, and expanding India’s pension industry. PFRDA was initially designed for government employees exclusively, but its services were subsequently expanded to include all Indian nationals and NRIs, including self-employed persons.
IPRDA (Interim Pension Fund Regulatory & Development Authority) was passed by Parliament in 2003 in order to have a system in place till the final and fool-proof system is prepared, re-approved, and implemented with the acceptance of all political parties including the opposition parties. And this final system i.e., PFRDA – Pension Fund Regulatory and Development Authority was established with the President’s assent on 19 September 2013 and was made a permanent Act. The President was the guardian of PFRDA till Financial Year (FY) 2014-15 and it has become fully autonomous and functions independently from FY 2014-15.
The PFRDA’s preamble declares that the authority’s goals are to “promote old age income security by creating, growing, and regulating pension funds, to safeguard the interests of subscribers to pension fund schemes, and for issues associated with or incidental thereto.”
PFRDA is headquartered in New Delhi, with regional offices located around the country.
As previously stated, the PFRDA has chosen a group of intermediaries to help with the organization, collection, management, record keeping, and distribution of money. Here’s a look at the intermediaries:
This intermediary’s responsibilities revolve around record keeping, accounting, administration, and providing customer support to Pension Fund subscribers. PFRDA has appointed two CRAs for the aforementioned functions: National Securities Depository Ltd. (CRA1) and Karvy Computershare Private Ltd. (CRA2).
Now, here is an outline of the CRA’s function as a mediator between PFRDA and the public:
The Pension Fund Regulatory and Development Authority has taken various steps, both online and offline, to make it easier for people to invest in pension schemes. The regulatory organization provides several internet services, which eventually encourages consumers to seek out various retirement funds-
Q1. What is the PFRDA Act?
An Act to create an Authority to promote old-age income security by creating, developing, and regulating pension funds, to safeguard the rights of pension fund subscribers, and for issues connected with or incidental thereto.
Q2. Where is the PFRDA headquarters?
The PFRDA is headquartered in New Delhi.
Q3. What exactly is the PFRDA Bill?
PFRDA was created in 2003 as an interim authority. In addition, the PFRDA Bill was aggressively launched in 2011 to give the temporary PFRDA legislative legitimacy. The Pension Fund Regulatory and Development Authority’s powers, tasks, and responsibilities are defined in this statute. Furthermore, it provided structure to India’s old-age pension system.
Q4. What exactly is NPS Trust?
PFRDA created the NPS Trust under the Indian Trusts Act of 1882 and assigned it as an intermediary responsible for monitoring and caring for NPS funds.
Q5. Which authority is in charge of overseeing the national pension scheme?
The National Pension Scheme is an Indian pension fund governed by the Pension Fund Regulatory and Development Authority.