Panel to submit report on one regulator for pension products

Panel to submit report on one regulator for pension products

Mumbai: A panel formed by the government to look into the issue of bringing all pension products under one regulator is likely to submit its report shortly, a top official of pension watchdog PFRDA said today.

At present, pension products are being regulated by multiple financial regulators like PFRDA, Sebi, Irdai and EPFO.

However, Pension Fund Regulatory and Development Authority (PFRDA) has urged the government to bring all such products under it.

“A proposal has been already put to the government to have a single regulator for all kinds of pension products in the country.

“The government has set up a committee to discuss the issue. The committee is likely to give its recommendation shortly,” PFRDA Chairman Hemant Contractor told reporters on the sidelines of a CII event here.

Apart from PFRDA, the panel has members from other regulators like Sebi, Irdai and EPFO.

PFRDA has also asked the Centre to allow private sector fund managers to manage the pension funds for government employees and it is hopeful of getting the government’s nod in a month’s time.

At present, only the three state-owned fund managers are managing such funds, he said.

Moreover, the board of PFRDA has already approved increasing equity exposure in the National Pension System (NPS) to 75 per cent from existing below 50 per cent, Contractor said.

Regarding Atal Pension Yojana (APY), he said rural populace is coming forward and opting for the government-sponsored plan.

“At present, 52 per cent of subscribers under APY comprise rural folks, which was not the case a year ago when the scheme was launched.

“This has become possible only when the regional rural banks and post offices joined the distribution channel for the scheme,” he said.

Total accumulation of funds under APY currently stands at Rs 900 crore, he said.

Except for West Bengal and Tripura, all states have agreed to implement the APY scheme for their employees, Contractor said, adding that PFRDA is in talks with these two states for the same.

PTI