PFRDA notifies amendments to NPST and Pension Fund Regulations

     New Delhi, February 21, 2024: The Pension Fund Regulatory and Development Authority (PFRDA) have notified the National Pension System Trust (Second Amendment) Regulations 2023 and Pension Fund (Amendment) Regulations 2023.

     The Pension Fund Regulatory and Development Authority (PFRDA) have notified the National Pension System Trust (Second Amendment) Regulations 2023 on February 05, 2024 and Pension Fund (Amendment) Regulations 2023 on February 09, 2024 respectively.

    The amendments to NPS Trust Regulations simplify the provisions related to appointment of Trustees, their terms and conditions, holding of meetings of Board of Trustees and appointment of CEO – NPS Trust, official sources said.

     Amendments to Pension Fund Regulations simplify the provisions related to governance of Pension Funds in line with Companies Act, 2013 and enhanced disclosure by Pension Funds.

     The other notable amendments inter alia include:

–  Clarity of roles of Sponsor of Pension Fund & Pension Fund along with compliance to ‘fit and proper person’ criteria.

– Constitution of additional Board committees by Pension Funds such as Audit Committee and Nomination & Remuneration Committee.

– Inclusion of name ‘Pension Fund’ in name clause and requirement of existing pension fund(s) to comply with this provision within a period of 12 months.

– 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 sources said adding the amendments are in line with Union Budget 2023-24 announcements to review regulations to reduce the cost of compliance and enhance the ease of doing business.