Pension Bill: Key Highlights
New Delhi: A key economic reforms legislation, the Pension Bill, that provides for investment of funds in equity market and opens the sector to at least 26 per cent FDI was on Wednesday passed by the Lok Sabha.
• The subscriber seeking minimum assured returns shall be allowed to opt for investing his funds in such scheme providing minimum assured returns.
• Withdrawals will be permitted from the individual pension account subject to the conditions, such as, purpose, frequency and limits, as may be specified by the regulations.
• At least one of the pension fund managers shall be from the public sector.
• To establish a vibrant Pension Advisory Committee with representation from all major stakeholders to advise PFRDA on important matters of framing of regulations under the PFRDA Act.
• It will have provision for withdrawals for limited purposes from Tier-I pension account, an incentive for subscribers to join the New Pension Scheme (NPS).
• The corpus of the NPS having 52.83 lakh subscribers (including those of 26 state governments) was about Rs 35,000 crore.
• The bill also seeks to grant statutory status to the Pension Fund Regulatory and Development Authority.