The Pension Fund Regulatory and Development Authority (PFRDA) will have a new chairman and a fully-functional statutory board in the next two months, said financial services secretary Rajiv Takru.
“I think all is going well, we should definitely have a new chairman in place within two months latest,” said Takru on the sidelines of a pension summit organised by the CII on Wednesday.
Takru added that the three whole-time members have already been chosen and government orders are in process.
According to the PFRDA Act 2013, the regulator should consist of a chairperson and not more than six members, of whom at least three shall be whole-time members, to be appointed by the government. The chairperson and every whole-time member would hold office for five years and would be eligible for reappointment. The age limit for chairperson is 65 years, while for whole-time members it would be 62 years.
The chairman’s post fell vacant on November 13 when Yogesh Agarwal stepped down. Reports suggested that Agarwal had quit after he was kept out of the selection committee that chooses whole-time members of the pension regulator.
The finance ministry has already invited applications for the PFRDA chairman’s post.
Noting that the penetration of the National Pension Scheme (NPS) is abysmal beyond government organisations, Takru also said that fund managers of the NPS will have to push the product more and should also market and distribute the same.
He added that the current incentive of up to 0.25% to fund managers for managing the pension corpus is more than enough.
“They have to manage the fund, who has stopped them to market that these are the returns that their fund generates,” he said when asked whether fund managers will be allowed to market their performance.
The NPS, which is mandatory for state government employees, currently has funds to the tune of R37,000 crore and more than 50 crore subscribers largely from the government sector. Eight fund managers manage the NPS for private companies while three managers have been appointed to look after government pension funds.