The new ''Pensions Fund Regulatory Development Authority Bill'' proposes to invest the pension funds in the market. The proposed Bill does not ensure guaranteed return to pensioners. The bill will provide legal backing for putting pension funds into stock markets.
At present, pension funds of over 10 lakh employees in the country are managed by domestic players such as Life Insurance Corporation of India, State Bank of India, Kotak Mahindra Bank and Reliance Capital, but foreign companies have evinced interest in the country’s pension market. The PFRDA bill, if passed, will open country’s lucrative pension sector to foreign players.
The Pensions Bill will be moved in Lok Sabha for consideration and passing on December 21,2011.
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