PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY

B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016
Ph : 011-26517501, 26517503, 26133730
Fax : 011-26517507
Website : www.pfrda.org.in

PFRDA/2020/ 52/REG-PF/18

Date: 10th December, 2020

CIRCULAR

To
CEOs of All Pension Funds

Dear Sir/ Madam,

SUBJECT: Change in Guidelines on aggregate holding of equity shares by a foreign company in Pension Funds as provided under Section 24 of the PFRDA Act, 2013 – Manner of calculation of such aggregate holding of equity shares by a foreign company in a Pension Fund under National Pension System – reg.

Reference is invited to the Circular No. PFRDA/2020/34 /REG-PF/4 dated 13th August, 2020 on Guidelines on aggregate holding of equity shares by a foreign company in Pension Funds as provided under Section 24 of the PFRDA Act, 2013.

2. In a partial modification to the above Circular, it has been decided by the Authority that point (a) under sub-paragraph (ii) of paragraph 6 of the Circular shall be read as under:
   “(a) a banking company /banking companies except foreign banks”
3. Subject to the aforementioned revision, all other terms and conditions as contained in the aforementioned guidelines shall remain unchanged. All Pension funds are called upon to note these changes and ensure necessary compliance.
4. This circular is issued in exercise of powers of the Authority under Section 14 (1) of the PFRDA Act, 2013.
5. The revision shall be effective from the date of this circular.

Yours sincerely,

(A. G. Das)
Executive Director

Source: PFRDA

The post Holding of equity shares by a foreign company in a Pension Fund under National Pension System appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

CIRCULAR

PFRDA/2019/17/SUP-SG/1

04.10.2019

To,

All Central Government Ministries & Departments/ State Governments
PrAOs, PAOs, CDDOs, NCDDOs – CG Nodal offices
DTAs,DTOs, DDOs – SG Nodal offices
All Central and State Autonomous Bodies
Points of Presence

Subject: Acceptance of CSRF forms or registration under NPS in case of subscriber who has lost both hands

The Pension Fund Regulatory and Development Authority (PFRDA) has received few requests from the Govt Nodal offices, requesting PFRDA to accept the subscriber registration (CSRF) form in case of such subscriber-employees joining under them, who are unable to affix signature on the CSRF form, being due to loss of both hands.

In view of the above and to facilitate the registration of such subscribers under NPS, the Govt Nodal offices/PoPs are advised to accept the subscriber registration (CSRF) form by obtaining the toe impression of the subscriber on the CSRF form. Further, where toe impression of such subscriber who has lost both hands is obtained on the CSRF form, it should be attested by two persons, one of whom should be the official designated to handle NPS related activities in Govt Nodal office/ PoP.

Sd/-
Sumeet Kaur Kapoor
Chief General Manager

The post Enrolment of Subscribers under NPS who lost both hands – PFRDA Circular appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016

PFRDA/17/07/11/0002/2019-SUP/CG

07.06.2019

To,

All Principal Accounting Officers of Central Autonomous Bodies

Sir/ Madam,

Subject: Necessary instructions for all CABs (Central Autonomous Bodies) concerned with reference to gazette notification F.No.1/3/2016-PR dated 31/01/2019 issued by Dept of Financial Services (DFS), Ministry of Finance containing recent announcements under NPS- reg.

This is with reference to the gazette notification F.No.1/3/2016-PR dated 31/01/2019 issued by Dept of Financial Services (DFS), Ministry of Finance (copy enclosed).

Vide the aforementioned notification, certain changes under NPS have been announced by Central Government including enhanced contribution by the Central Government to its employees covered under NPS from the existing 10% to 14% (to Tier-I account). The changes under said notification are applicable w.e.f. 01-04-2019 for Central Government employees. However, the circular is silent on the its applicability to the employees of the CABs covered under NPS.

In view of the above, PFRDA has requested the Department of Expenditure to clarify whether the above-mentioned changes/ modifications under NPS would be applicable to employees of Central Autonomous Bodies (CABs) covered under NPS.

In the interim, PFRDA has been approached by various CABs who have individually obtained their internal approvals for enhancing the employer contribution from 10% to 14% and hence, have sought PFRDA’s approval for uploading the same through the existing CRA functionality.

In light of the above and till the time clarification emerges on the matter of applicability of notification dated 31.01.2019 on CABs , it has been decided by the competent authority that the CABs who have obtained such internal approvals, should obtain a separate and express approval/concurrence for the applicability of the said provisions of the notification dated 31.01.19 on their employees from Department of Expenditure (DOE), Ministry of Finance.

Consequent upon receipt of such approval from the DOE, Ministry of Finance, a copy of the referred approval may be forwarded to the CRA, for necessary action at the CRA’s end.

Yours Sincerely,
(Sumeet Kaur Kapoor)
Chief General Manager

Source: NPSTrust.Org.in

The post PFRDA Circular regarding enhanced Govt Contribution from 10% to 14% under NPS i.r.o. Central Autonomous Bodies appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Ph: 011-26517501, 26517503, 26133730
Fax: 011-26517507
Website: www.pfrda.org.in

CIRCULAR

PFRDA/2019/8/SUP-PF/2

Date: 25.03.2019

Subject: Amendment to the investment Guidelines (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana)

Reference is invited to the Investment Guidelines for NPS Schemes (Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana) dated 3rd June 2015 issued vide circular no. PERDA/2015/16/PFM/7, the Change in Investment guidelines for NPS schemes W.r.t. Investment in equity Mutual funds vide circular no. PERDA/2018/56/PF/2 dated 20th August 2018 and Revised rating criteria for investments under NPS Schemes vide circular No. PERDA/2018/02/PF/02 dated 08.05.2018. The changes hereunder shall apply only to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana.

2. In order to provide flexibility to the Pension Funds to improve the scheme performance depending upon the market conditions, it has been decided to increase the cap on Government Securities & related investments and Short term debt instruments & related investments by 5% each.

3. The asset class wise revised caps on the various asset classes are as under:

4.The other terms and conditions as mentioned in the circular PERDA/2015/16/PFM/7 dated 03.06.2015, circular no. PERDA/2018/56/PF/2 dated 20th August 2018 and circular No. PFRDA/2018/02/PF/02 dated 08.05.2018 shall remain the same.

This circular is issued in exercise of powers of the Authority under sub-clause (b) of the sub-section (2) of section 14 of Pension Fund Regulatory and Development Authority Act, 2013 read with regulation 14 and 43 of PFRDA (Pension Fund) Regulation, 2015.

This would be effective from 01.04.2019.

Venkateswarlu Peri
(Chief General Manager)

The post PFRDA: Amendment to the investment Guidelines (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana) appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

File No. PFRDA/16/3/29/0081/2017-REG-PF

Date: 13th February ,2019

To
Shri C.SriKumar
General Secretary
All India Defence Employee’s Federation
S.M.Joshi Bhavan, Survey No.81,
Dr.Babasaheb Ambedkar Road,
Khadki, Pune – 411 003

Subject: Guaranteed Pension to the Central Government Employees governed under NPS – reg.

Dear Sir,

We refer to your letter No.94/1094/NPS/AIDEF/19 dated 1st February ,2019 regarding subject mentioned above.

In this regard, we inform that the Authority is in process of designing a scheme providing minimum assured returns to the NPS subscribers in terms of Pension Fund Regulatory and Development Authority Act,2013, in consultation with the Pension Funds Actuaries and Financial Sector Regulators. The Proposal is under active deliberation and being workout in best possible way. It is proposed that the final proposal would be put up for stakeholder consultation in our website once the same is ready and feedback would be received from all concerned before finalizing the proposal.

The Authority would notify such minimum assured scheme once finalized with the approval of the Government.

This is for your information.

Yours sincerely,

(Venkateswarlu Peri)
Chief General Manager

The post Guaranteed Pension to the Central Government Employees governed under NPS appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

PFRDA

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area,
Katwaria Sarai, New Delhi – 110 016.
Ph: 011-26517501, 26517503, 26133730
Fax:011-26517507
Website: www.pfrda.org.in

CIRCULAR

PFRDA/2018/01/PF/01

Date: 4th May, 2018

Subject: Common Stewardship Code

1.  National Pension System strives to provide old age income security to its subscribers of which NPS Trust is the legal owner of the funds and the Pension Funds undertaking investment of such monies as per the investment guidelines approved by the Authority. Pension Funds are expected to shoulder greater responsibility towards the subscribers/beneficiaries by enhancing monitoring and engagement with the investee companies. Such activities are commonly referred to as ‘Stewardship Responsibilities’ of the institutional investors and asset managers and are intended to protect the subscribers’ pension wealth. Such increased engagement is also seen as an important step towards improved corporate governance in the investee companies and gives a greater fillip to the protection of the interest of subscribers in such companies.

2. In view of the above, in consultation with Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority of India (IRDAI), a proposal for introducing a Stewardship Code in India was examined by a sub¬committee of the Financial Stability and Development Council (FSDC) and approved.

3. All the Pension Funds under the NPS architecture shall follow the Stewardship Code as placed at Annex including the voting policy dated 20.04.2017, which is already recognized in such principles and is effective.

4. The principles (other than voting policy which is already in effect) enumerated in the Code shall be effective from the date of issuance.

5. This Circular is issued in exercise of the powers conferred under Sections 14 (1) read with 14 (2) (a) & (b) of the Pension Fund Regulatory and Development Authority Act, 2013.

6. This Circular is available at www.pfrda.org.inJ under the link “Regulatory Framework- Circulars”.

S/d,
(Venkateswarlu Peri)
Chief General Manager

To
Pension Funds registered with PFRDA

The post PFRDA Circular – Common Stewardship Code appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

PFRDA/2015/16/PFM/7

Sub: Investment guidelines for NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana) w.e.f, 10th June, 2015.

a) NPS investments have been restricted to 5% of the ‘paid up equity capital’* of all the sponsor group companies or 5% of the total AUM under Equity exposure whichever is lower, in each respective scheme and 10% in the paid up equity capital of all the non-sponsor group companies or 10% of the total AUM under Equity exposure whichever is lower, in each respective scheme.

*’Paid up share capital’: Paid up share capital means market value of paid up and subscribed equity capital.

b) NPS investments have been restricted to 5% of the ‘net-worth” of all the sponsor group companies or 5% of the total AUM in debt securities (excluding Govt. securities) whichever is lower in each respective scheme and 10% of the net-worth of all the non-sponsor group companies or 10% of the total AUM in debt securities (excluding Govt. securities) whichever is lower, in each respective scheme.

#Net Worth: Net worth would comprise of Paid-up capital plus Free Reserves including Share Premium but excluding Revaluation Reserves, plus Investment Fluctuation Reserve and credit balance in Profit & Loss account, less debit balance in Profit and Loss account, Accumulated Losses and Intangible Assets.

c) Investment exposure to a single Industry has been restricted to 15% under all NPS Schemes by each Pension Fund Manager as per Level-5 of NIC classification. Investment in scheduled commercial bank FDs would be exempted from exposure to Banking Sector.

d) if the PF makes investments in Equity/Debt instruments, in addition to the investments in Index funds/ETF/Debt MF, the exposure limits under such Index funds/ETF/Debt MF should be considered for compliance of the prescribed the Industry Concentration, Sponsor/ Non Sponsor group norms. (For example, if on account of investment in Index Funds/ ETFs/Debt MFs, if any of the concentration limits are being breached than further investment should not be made in the relative Industry /Company).

Source: http://pfrda.org.in/MyAuth/Admin/showimg.cshtml?ID=705

The post Investment guidelines for NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and Atal Pension Yojana) w.e.f, 10th June, 2015. appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

CIRCULAR

PFRDA
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

PFRDA/2015/07/EXIT/02

12th May, 2015

To,
All Govt depts./PAO’s/PrAO’s/DDO’s/DTO’s & CRA

Dear Sir/ Madam,

SUB: Simplification of Withdrawal process – Documentary requirements- Circular dt. 25th February, 2015

Reference is drawn to the circular issued on 25th February, 2015 on the matter of simplification of withdrawal process and the documentary requirements thereunder.

There have been queries from some of the stakeholders as to whether these simplified documentary requirements as specified in the circular are applicable to withdrawal requests reported to CRA and NPS Trust, prior to the issuance of the circular or not.

In this regard, it is clarified that the circular would be applicable even to the withdrawal requests which were reported prior to the issuance of the said circular to CRA and NPS Trust.

All other terms, conditions of the said circular remain unaltered.

Yours faithfully,
Sd/-
Venkateswarlu Peri
General Manager

Source: PFRDA

Download: NPS Simplification of Withdrawal process – PFRDA Clarification

The post Simplification of Withdrawal process – Documentary requirements : PFRDA Clarification appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

PF Regulatory and Development Authority has issued Amendment with effect from 01.04.2015 to revised investment guidelines for NPS Schemes Applicable to Government Sector, Corporate CG and NPS lite schemes of NPS

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

1st Floor, ICADR Building, Plot No. 6,
Vasant Kunj Institutional Area,
Phase – II, New Delhi – 110070

Circular

PFRDA/2015/12/PFM/06

Date: 31st March 2015

To,
All Pension Funds,

Subject: Amendment to Revised Investment Guidelines for NPS schemes.

The existing circular no. PFRDA/2014/02/PFM/1 dated 29-Jan-2014 on the subject Revision of Investment Guidelines for NPS Schemes is amended as highlighted under:

Government Sector NPS Schemes (Applicable to Government Sector, Corporate CG and NPS lite schemes of NPS)

(ii) Debt Securities (Up to 40%)/ point (a) : Debt securities having a minimum residual maturity period of three years from the date of investment by the Pension Fund issued by Bodies Corporate including banks and public financial Institutions; Provided that the investment in this category is made in instruments having an minimum “AA” or equivalent investment grade rating from at least one credit rating agency regulated by SEBI, under SEBI (Credit Rating Agency) Regulation 1999. Apart from rating by an agency, PFMs shall undertake their own due diligence for assessment of risks associated with the securities before investments.
Private Sector NPS {Applicable to E (Tier I & II), C (Tier-I & II) and G (Tier I & II)}

C/ (ii): Credit rated debt securities with residual maturity of not less than three years from the date of investment, issued by Bodies Corporate including scheduled commercial banks and public financial institutions [as defined in Section 4A of the Companies Act] 1956, Provided that the investment in this category is made in instruments having an minimum “AA” or equivalent investment grade rating from at least one credit rating agency regulated by SEBI, under SEBI ( Credit Rating Agency ) Regulation 1999. PFM has to do his own due diligence too

2. The above stated amendments are applicable to the inflow of the fresh funds w.e.f. 01.04.2015.

3. All other extant investment guidelines to continue.

Sumeet Kaur Kapoor
(General Manager)

Source: PFRDA Circular

The post Amendment to Revised Investment Guidelines for NPS schemes. appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.