In order to make the National Pension System (NPS) more transparent, increase the subscriber base and ensure orderly growth, the pension fund regulator has taken a host of initiatives easing the process of transacting for the subscribers and the Points of Presence (PoP).

The Pension Fund Regulatory and Development Authority (PFRDA) has now issued guidelines for opening ‘on tap’ registration of pension funds on a continuous basis to manage the pension assets of NPS subscribers under central government schemes, state government schemes, private sector schemes and other schemes regulated by it. It has amended the NPS Trust regulations for monitoring and evaluation of all operational and service level or investment management activities of pension funds, trustee bank, custodians and of central recordkeeping agencies for exits and withdrawals. The regulator has also amended the Points of Presence (PoP) regulations to make them more efficient.

Registration of new pension funds

Every year, the regulator will open ‘on tap’ registration for pension funds for 30 days. The interested entity will have to make an offer for being selected as a sponsor of a pension fund. If selected, it will have to float a separate company to be registered as a pension fund by the regulator. A pension fund is an intermediary which has been granted a certificate of registration by PFRDA for receiving contributions, accumulating them and making payments to the subscriber. The pension fund will exercise all due diligence and prudence in carrying out its duties and in protecting the rights and interests of the subscribers.

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