National Pension System: PFRDA to get more fund managers

By: | Published: September 21, 2016 6:02 AM

To manage corpus of private sector investors in National Pension System (NPS), PFRDA proposes to hire more fund managers.

  • PFRDA has proposed to hire 10 pension funds to manage corpus of private sector schemes under NPS.
  • The pension funds may also be required to handle any other pension schemes that may be assigned by the regulator in future.
  • Funds of central and state government schemes are managed by LIC Pension Fund, SBI Pension Fund and UTI Retirement Solutions.
  • For private sector subscribers,
  • there are seven pension fund managers as of now.
  • Though maximum fund management charges have been lowered from 0.25% to 0.1%, bidders will not have to match the lowest bid this time round.
  • Bidders or sponsors of NPS funds will have to be in the financial services business regulated either by RBI, Sebi or Irdai and must have five years of experience in fund management with a monthly AUM of at least R10,000 crore. It should have been profitable for three out of the last five years.
  • The NPS fund management charges may increase after the completion of the bidding process.
  • The record keeping, administration and customer service functions for all subscribers of the NPS are centralised and performed by National Securities Depository Limited e-Governance Ltd (NSDL) which is the CRA designated by the regulator.
  • The CRA is responsible for receiving funds and instructions from subscribers through the NPS Contribution Accounting Network and transmit such instructions and funds to the appointed pension funds.

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