ADB suggests global expertise for PFDRA mgmt

New Delhi, Aug 3 | Updated: Aug 4 2005, 05:37am hrs
An Asian Development Bank (ADB) report has suggested that the Pension Fund Regulatory and Development Authority (PFRDA) should seek external expertise for creating a management information platform based on the Central Recordkeeping and Accounting Agency (CRA) administrative statistics.

Labour minister K Chandrasekhar Rao told the Lok Sabha on Wednesday that as part of a technical assistance agreement, ADB had set up a five member project team to conduct a National Sample Survey to study the income, expenditure and savings behaviour of the Indian labour force. The survey covered 40,862 rural and urban labourers.

The ADB report based on the study, has enlisted a slew of recommendations for streamlining the unorganised sector under the national pension scheme (NPS). It said that NPS should cover unorganised sector and also give equal attention for marketing the new scheme in rural areas. Before NPS is implemented, PFRDA should conduct further market research into savings behaviour of mechanised farmers, small retailers and niche market self-employed workers.

The report also says that PFRDA should test market the NPS architecture and marketing tools in a few selected states, prior to its complete implementation nationally. PFRDA, it says, should cautiously consider the regulatory implications of the NPS architecture if it is intended to change it from single CRA to multiple CRA or to a single master trust fund. Also the report recommended the need for PFRDA to carefully audit the systems proposed to be used by CRA.

According to the report, the government should consider the merits of co-contribution arrangements for widowed workers contributing to the NPS.