PFRDA notifies changes to NPS Trust, pension fund regulations

The amendments to the NPS Trust and pension fund regulations try to simplify and reduce compliance.

The Pension Fund Regulatory and Development Authority (PFRDA) has notified amendments to the National Pension System Trust and Pension Fund regulations. The legal changes, which were notified earlier this month, are in line with what was announced in the Union Budget for 2023-24 that said the regulations would be reviewed to lower the cost of compliance and enhance ease of doing business.

The changes to the NPS Trust norms simplify provisions for the appointment of trustees, their terms and conditions, holding of meetings of Board of Trustees, and appointment of NPS Trust's chief executive officer.

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"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 finance ministry said in a statement on February 21.

Some of the other changes to the regulations also call for the inclusion of the phrase 'Pension Fund' in the name clause, with existing pension funds given 12 months to meet this requirement. Further, amendments have been made relating to the annual report of schemes managed by the pension fund to include directors' responsibility statement and constitution of additional board committees by pension funds, such as audit and nomination and remuneration committees.