Kerala CM flays Centre`s move to `privatise` pension scheme
Following the introduction of the PFRDA Bill, 2011 in Lok Sabha, Kerala Chief Minister VS Achuthanandan today urged the Centre to back out from its move to "privatise" the pension scheme of central and state government employees.
Thiruvananthapuram: Following the introduction
of the Pension Fund Regulatory and Development Authority
(PFRDA) Bill, 2011 in Lok Sabha, Kerala Chief Minister V S
Achuthanandan today urged the Centre to back out from its move
to "privatise" the pension scheme of central and state
The PFRDA Bill that was introduced in Parliament on Thursday
was a move towards privatising pension, and if passed, pension
for Central and State government employees would no longer
have government guarantee, the Chief Minister said in a
The first UPA government had also tried to "privatise" the
pension scheme, but the plan was dropped due to stiff
resistance from the Leftist parties, the statement said.
Achuthanandan said employees should come out with strong
protest against the Centre`s move.
The Bill, introduced by Finance Minister Pranab Mukherjee,
provides for establishing a statutory regulatory body to be
called the Pension Fund Regulatory and Development Authority
(PFRDA), which will undertake promotional, developmental and
regulatory functions in respect to pension funds.
According to the statement of objects and reasons of the
Bill, foreign investment policy for pension sector
intermediaries, including the pension funds and central
record-keeping agency, would be determined and notified
outside the proposed legislation under Foreign Exchange
The Bill also contains provisions for empowering the
PFRDA to regulate the National Pension system (NPS), as
amended from time to time. Moreover, it authorises the PFRDA
to levy fees for services rendered by it to meet its expenses.
The pension fund regulator can also impose penalties for
any violation of the provisions of the legislation, rules,
regulations, etc, once the Bill is passed.