The Pension Fund Regulatory and Development Authority (PFRDA) is a statutory body established by the Government of India to regulate, develop, and oversee pension funds in the country. PFRDA aims to promote retirement savings and ensure financial security for individuals through pension schemes. The authority plays a crucial role in managing the National Pension System (NPS) and other pension-related initiatives.
The Interim Pension Fund Regulatory & Development Authority (IPRDA) was established in 2003 as a temporary body to regulate pension funds in India. Later, the PFRDA Act, 2013, provided a legal framework for the formation of a permanent regulatory authority. Since then, PFRDA has been responsible for ensuring transparency, efficiency, and security in the pension sector.
Pension Fund Regulatory and Development Authority is responsible for regulating, promoting, and ensuring the orderly growth of the pension sector in India. Some of its primary functions include:
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The Pension Fund Regulatory and Development Authority Act, 2013, was enacted to provide a legal foundation for the regulatory body. Key provisions of the Act include:
The National Pension System (NPS) is a flagship pension scheme regulated by PFRDA. It is open to all Indian citizens, including government and private-sector employees. Key features of NPS include:
A Central Record Keeping Agency (CRA) is an entity appointed by PFRDA to maintain NPS subscriber records and ensure smooth pension fund operations. The functions of CRA include:
Currently, Protean eGov Technologies Ltd. (formerly NSDL e-Governance) and KFin Technologies Ltd. serve as CRAs for the National Pension System.
To facilitate easy access to pension-related services, PFRDA provides various online services through its digital platforms, including:
PFRDA plays a key role in increasing pension participation across India. Its initiatives include:
Despite its significant achievements, Pension Fund Regulatory and Development Authority faces challenges such as:
To address these issues, PFRDA is working on:
The Pension Fund Regulatory and Development Authority (PFRDA) plays a vital role in shaping India’s pension ecosystem. With its focus on regulatory oversight, pension fund expansion, and digital accessibility, Pension Fund Regulatory and Development Authority ensures financial security for retirees. Through NPS, APY, and other pension schemes, the authority continues to promote retirement savings for millions of Indians.
PFRDA regulates, promotes, and supervises pension funds in India, ensuring retirement security through schemes like NPS.
The PFRDA Act, 2013 provides a legal framework for pension fund regulation and establishes PFRDA as a statutory body.
IPRDA (Interim Pension Fund Regulatory & Development Authority) was a temporary body formed in 2003, while PFRDA became a statutory body under the PFRDA Act, 2013.
PFRDA offers NPS registration, fund management, e-NPS, online grievance redressal, and mobile applications for easy pension management.
CRAs maintain NPS records, issue PRANs, and process transactions for pension subscribers.
Yes, NPS investments are regulated by PFRDA, with diversified portfolios to balance risks and returns.
NPS subscribers can claim tax deductions under Section 80CCD(1) and 80CCD(2) of the Income Tax Act.
Subscribers can use the online grievance redressal system on the PFRDA website or contact their respective CRA for assistance.
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