New Delhi: The pension reforms bill to set up a regulator and give more freedom to subscribers for investing their retirement money is likely to be tabled in the monsoon session of Parliament, the finance ministry sources said on Tuesday. "Amendments are ready. Hopefully, it would be tabled in the upcoming monsoon session of the Parliament," sources said. The Pension Fund Regulatory and Development Authority Bill (PFRDA) was introduced by the finance minister, Mr P. Chidambaram, way back in 2005 to replace the ordinance promulgated in 2004 for setting up the regulator.
The bill was referred to the Parliamentary Standing Committee after the Left parties opposed the legislation. The standing committee recommended the bill with some modifications. But the amended bill could not be tabled in Parliament due to persistent opposition from the Left. Pension reforms bill will give more freedom to subscribers to invest their retirement money and invite more players in the sector. After the Left exited as the supporting front to the ruling coalition and the government won the trust vote with support of its new allies, hopes have arisen that the PFRDA Bill along with other reform legislations would be tabled in the Parliament.
Two other bills relate to raising of the FDI cap from present 26 per cent to 49 per cent in the insurance sector, and lifting of the voting cap in the private sector banks. The finance minister had recently stated that he would seek support to reforms bills from even those who had voted against the government in the confidence motion. The government had appointed Ms D. Swarup as the interim pension regulator, PFRDA, way back in 2003.
The Centre has implemented new pension system (NPS) for its employees who have joined the government services since January one, 2004, which is now known as interim pension reforms. Under the NPS, the employee has to contribute to his pension fund, matched by employer (in this case, the government). Under the old pension system, pensioners have assured benefits, but under NPS, they have defined contribution. Most states, barring Left-ruled West Bengal, Kerala and Tripura, have also joined NPS, under which employees have been now given freedom to opt for parking five per cent of its funds in the stock market
The bill was referred to the Parliamentary Standing Committee after the Left parties opposed the legislation. The standing committee recommended the bill with some modifications. But the amended bill could not be tabled in Parliament due to persistent opposition from the Left. Pension reforms bill will give more freedom to subscribers to invest their retirement money and invite more players in the sector. After the Left exited as the supporting front to the ruling coalition and the government won the trust vote with support of its new allies, hopes have arisen that the PFRDA Bill along with other reform legislations would be tabled in the Parliament.
Two other bills relate to raising of the FDI cap from present 26 per cent to 49 per cent in the insurance sector, and lifting of the voting cap in the private sector banks. The finance minister had recently stated that he would seek support to reforms bills from even those who had voted against the government in the confidence motion. The government had appointed Ms D. Swarup as the interim pension regulator, PFRDA, way back in 2003.
The Centre has implemented new pension system (NPS) for its employees who have joined the government services since January one, 2004, which is now known as interim pension reforms. Under the NPS, the employee has to contribute to his pension fund, matched by employer (in this case, the government). Under the old pension system, pensioners have assured benefits, but under NPS, they have defined contribution. Most states, barring Left-ruled West Bengal, Kerala and Tripura, have also joined NPS, under which employees have been now given freedom to opt for parking five per cent of its funds in the stock market
Source: Deccan Chronicle, The Times of India, The Financial Express, Asian Age
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