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Parliamentary Panel under the leadership of former Finance Minister Mr. Yashwant Sinha has been formed by Government to look into Pension Fund Regulatory and Development Authority (PFRDA) Bill,2011.
This bill was introduced in Parliament in the year 2011, and this panel is mainly examining the Foreign Direct Investment in Pension Schemes. Presently, FDI in pension schemes is not allowed.
As one of the recommendations, in the regulation of FDI in pension Schemes, the Committee has proposed that the Subscribers of New Pension Scheme should be provided with an assured return for their investments.
However, no pension fund offers a guaranteed return in India now. The Committee has also recommended that the assured return can be at par with Employees Provident Fund. At present an assured return at the rate of 9.5% per annum is provided in the case of investments in Employees Provident Fund.
The Standing Committee has also suggested imposing a 26 per cent cap on foreign direct investment (FDI) in pension schemes.
The committee further suggested that the government should make concerted efforts to extend the coverage of the scheme in both the public and private sector.