New Delhi [India], February 21 : The Pension Fund Regulatory and Development Authority (PFRDA) has notified amendments to the National Pension System Trust (NPST) and Pension Fund Regulation with the changes aimed at simplification and reducing compliance and enhancing disclosure.
A Finance Ministry release said that PFRDA notified the National Pension System Trust (Second Amendment) Regulations 2023 and Pension Fund (Amendment) Regulations 2023 earlier this month.
It said the amendments simplify provisions related to governance of Pension Funds in line with Companies Act, 2013, enhance disclosure by Pension Funds and reduce compliance.
The amendments to NPS Trust Regulations simplify the provisions related to the appointment of Trustees, their terms and conditions, the holding of meetings of the Board of Trustees and the appointment of CEO.
The other notable amendments include clarity of roles of the Sponsor of Pension Fund & Pension Fund along with compliance to 'fit and proper person' criteria and constitution of additional Board committees by Pension Funds such as the Audit Committee and Nomination and Remuneration Committee.
It also includes the inclusion of the name 'Pension Fund' in the name clause and the requirement of existing pension fund(s) to comply with these provisions within 12 months and the annual report of schemes managed by the pension fund to include Directors' responsibility statement.
"The amendments in key areas aim at simplification and reducing compliance. The above amendments are in line with Union Budget 2023-24 announcement to review regulations to reduce the cost of compliance and enhance the ease of doing business," the release said.
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