Pension Fund Regulatory and Development Authority (PFRDA) Bill, 2011

• The Pension Fund Regulatory and Development Authority (PFRDA) Bill, 2011, was passed in the Rajya Sabha and also passed in Lok Sabha on Sep 2013.


• The bill would make the Pension Fund Regulatory and Development Authority a statutory authority, unlike its present non-statutory status.


• The bill provides subscribers a wide choice to invest their funds including for assured returns by opting for Government Bonds as well as in other funds depending on their capacity to take risk.


• It pegs the FDI in pension sector at 26 per cent or such percentage as may be approved for the insurance sector, which ever is higher.


• The New Pension System (NPS) aims to promote “saving while you earn” especially for retirement and is mainly for those who have a regular income, Mr. Chidambaram said.