Team Blitz India
The Pension Fund Regulatory and Development Authority (PFRDA) has notified the National Pension System Trust (Second Amendment) Regulations 2023 and Pension Fund (Amendment) Regulations 2023 on February 5 and February 9, 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 of the Trust. 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 include clarity of roles of sponsor of pension fund and pension fund alongwith compliance to ‘fit and proper person’ criteria; constitution of additional board committees by such as audit committee and nomination and remuneration committee; inclusion of name ‘pension fund’ in name clause and requirement of existing pension fund(s) to comply with this provisions within a period of 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 and 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.
