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Lok Sabha passes long-pending Pension Bill

Lok Sabha passes long-pending Pension Bill

NEW DELHI: The Lok Sabha on Wednesday passed the Pension Fund Regulatory and Development Authority (PFRDA) Bill 2011, an important economic legislation that will pave the way for foreign investment in the sector.

The Bill allows 26% foreign investment in the Pension sector and gives statutory backing to the interim pension authority that had been functioning on executive authority for over a decade now. It also gives legal backing to the pensions regulator to create a social security architecture that channels savings of households into the financial sector.

The PFRDA manages the New Pension System, a defined contribution scheme for the central government that many states have joined and is also now open to private individuals.

http://economictimes.indiatimes.com/news/economy/policy/lok-sabha-passes-long-pending-pension-bill/articleshow/22294270.cms

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