## Report on the Pension Fund Regulatory and Development Authority (PFRDA) Pension Fund Fifth Amendment Regulations, 2021
**1. Executive Summary:**
This report analyzes the Pension Fund Regulatory and Development Authority (PFRDA) Pension Fund Fifth Amendment Regulations, 2021, as published in the Gazette of India on May 25, 2021. This amendment modifies the PFRDA Pension Fund Regulations, 2015, specifically altering the eligibility criteria for sponsors of pension funds. The key change pertains to the required net worth and paid-up equity capital of potential sponsors. The analysis focuses on the changes introduced by this amendment and their potential implications for the pension fund industry.
**2. Introduction:**
This report provides an informative overview of the PFRDA Pension Fund Fifth Amendment Regulations, 2021. The analysis is based solely on the provided policy text and aims to inform the affected industry about the changes introduced and their potential impact.
**3. Policy Overview:**
* **Original Policy:** The PFRDA Pension Fund Fifth Amendment Regulations, 2021 amends the Pension Fund Regulatory and Development Authority Pension Fund Regulations, 2015.
* **Core Objective(s):** The core objective of the amendment, as inferred from the text, is to revise and potentially refine the eligibility criteria for entities seeking to become sponsors of pension funds. This suggests an aim to ensure the financial stability and capability of pension fund sponsors.
**4. Background and Rationale:**
The amendment likely addresses concerns regarding the financial strength and commitment of pension fund sponsors. The change in net worth and paid-up equity capital requirements suggests a desire by the PFRDA to strengthen the financial qualifications for sponsors. This could be driven by a need to mitigate risks associated with sponsors lacking sufficient financial resources.
**5. Key Provisions / Changes:**
The key change introduced by the Fifth Amendment Regulations, 2021, concerns Regulation 8, subregulation 1, clause (d) of the PFRDA Pension Fund Regulations, 2015. This clause relates to the eligibility criteria for pension fund sponsors.
* **Specific Part Changed:** Regulation 8, subregulation 1, clause (d)
* **New Rule/Provision:** The amended clause (d) now states: "the sponsors, individually or jointly, shall have a positive tangible net worth of at least fifty crore rupees on the last day of each of the preceding five financial years and at least twentyfive crore rupees should be the paid up equity capital on the date of making application as sponsor;"
* **Difference/Effect of Change:** Previously, the specific net worth and paid-up equity capital requirements for sponsors were potentially different or less stringent. The amendment now mandates a minimum positive tangible net worth of fifty crore rupees for each of the preceding five financial years and a minimum paid-up equity capital of twenty-five crore rupees at the time of application. This increases the financial burden for potential sponsors and likely aims to ensure only financially sound entities become sponsors.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders directly affected by this amendment are:
* Entities currently acting as sponsors of pension funds.
* Organizations considering applying to become pension fund sponsors.
* The PFRDA itself, as the regulatory body responsible for overseeing pension funds.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The PFRDA is the responsible agency for implementing and enforcing these regulations.
* **Timelines/Procedures:** The amendment came into force on the date of its publication in the official gazette, which was May 25, 2021. This implies that any new applications for pension fund sponsorship, or any ongoing reviews of existing sponsors, will be subject to these revised financial criteria from that date forward.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of these changes is to:
* Increase the financial stability and credibility of pension fund sponsors.
* Reduce the risk of sponsor-related failures or mismanagement affecting pension fund assets.
* Potentially limit the number of entities eligible to become sponsors, leading to a more concentrated pool of financially robust sponsors.
**9. Conclusion:**
The PFRDA Pension Fund Fifth Amendment Regulations, 2021 represent a refinement of the eligibility criteria for pension fund sponsors. By increasing the required net worth and paid-up equity capital, the PFRDA aims to enhance the financial robustness of sponsors and safeguard the interests of pension fund beneficiaries. This amendment is a significant development for both existing and prospective pension fund sponsors and warrants careful consideration.
Key Entities Referenced
Pension Fund Regulatory and Development Authority: Regulatory body responsible for promoting and regulating pension funds in India.
Pension Fund Regulatory and Development Authority Act, 2013: The Act of the Indian Parliament that established the Pension Fund Regulatory and Development Authority and provides the legal framework for regulating pension funds in India.
Pension Fund Fifth Amendment Regulations, 2021: Amendment regulations made by the Pension Fund Regulatory and Development Authority in 2021.
Pension Fund Regulations, 2015: Regulations issued by the Pension Fund Regulatory and Development Authority in 2015.
New Delhi: Capital of India, location of the notification.
SUPRATIM BANDYOPADHYAY: Chairperson of the Pension Fund Regulatory and Development Authority.
Gazette of India: Official government publication in which the regulations are published.
Pension Fund First Amendment Regulations, 2016: First Amendment Regulations to the Pension Fund Regulations, 2015.
Pension Fund Second Amendment Regulations, 2020: Second Amendment Regulations to the Pension Fund Regulations, 2015.
Pension Fund Third Amendment Regulations, 2020: Third Amendment Regulations to the Pension Fund Regulations, 2015.
Pension Fund Fourth Amendment Regulations, 2021: Fourth Amendment Regulations to the Pension Fund Regulations, 2015.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-25052021-227186
xxxGIDHxxx
CG-DL-E-25052021-227186
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 202] नई दिल्ली, मगं लिार, मई 25, 2021/ज्य ष्े ठ 4, 1943
No. 202] NEW DELHI, TUESDAY, MAY 25, 2021/JYAISHTHA 4, 1943
पिें न जनजध जिजनयामक और जिकास प्राजधकरण
अजधसचू ना
नई दिल्ली, 25 मई 2021
पिें न जनजध जिजनयामक और जिकास प्राजधकरण (पिें न जनजध) (पाचाँ िा सिं ोधन) जिजनयम, २०२१
स.ं पीएफआरडीए/१२/आरिीएल/१३९/९.—पेंिन जनजध जिजनयामक और जिकास प्राजधकरण अजधजनयम
२०१३ (२०१३ का २३) की धारा ५२ की उपधारा २ के उप-खंडों (ङ), (ड), (ढ), (ण) और (त) के साथ पठनीय धारा ५२
की उपधारा (१) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, पेंिन जनजध जिजनयामक और जिकास प्राजधकरण एतद्द्वारा
जनम्नजलजखत जिजनयम बनाता ह,ै नामतः-
1. इन जिजनयमों का नाम 'पेंिन जनजध जिजनयामक और जिकास प्राजधकरण (पेंिन जनजध) (पााँचिा संिोधन)
जिजनयम, २०२१' ह ै।
2. ये िासकीय रािपत्र म ेंइनके प्रकाजित होने की तारीख से प्रभािी होंगे I
3. पेंिन जनजध जिजनयामक और जिकास प्राजधकरण (पेंिन जनजध) जिजनयम, २०१५ म:ें-
(I) जिजनयम ८ में उप-जिजनयम १ के खंड (घ) को जनम्नानुसार प्रजतस्ट्थाजपत दकया िाएगा –
2816 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“(घ) – प्रायोिक, एकल या सयंुि रूप स,े जपछल ेप्रत्येक पाचं जित्त िर्षों के अंजतम दिन न्यनूतम पचास करोड़ रुपय े
की सदिय मूतत जनिल मूल्य की पररसंपजत्त धाररत करता हो और प्रायोिक के रूप म ेंआिेिन करने की जतजथ के समय
न्यूनतम पच्चीस करोड़ रुपय ेकी चुकता इदिटी पूाँिी धाररत करता हो;’’
सुप्रजतम बंिोपाध्याय, अध्यक्ष
[जिज्ञापन-III/4/असा./65/2021-22]
पाि-रटप्पणी
1. मूल जिजनयम, पेंिन जनजध जिजनयामक और जिकास प्राजधकरण (पेंिन जनजध) जिजनयम, २०१५ को अजधसूचना
संख्या पीएफआरडीए/१२/आरिीएल/१३९/९ के माध्यम से भारत सरकार के रािपत्र में भाग-III, खंड-४ में १९
मई, २०१५ को प्रकाजित दकया गया ।
2. पेंिन जनजध जिजनयामक और जिकास प्राजधकरण (पेंिन जनजध) (प्रथम संिोधन) जिजनयम, २०१६ को अजधसूचना
स.ं पीएफआरडीए/१२/आरिीएल/१३९/९ के माध्यम से भारत सरकार के रािपत्र में भाग-III, खंड-४ म ें८
जसतम्बर २०१६ को प्रकाजित दकया गया।
3. पेंिन जनजध जिजनयामक और जिकास प्राजधकरण (पेंिन जनजध) (िसू रा संिोधन) जिजनयम, २०२० को अजधसूचना
संख्या पीएफआरडीए/१२/आरिीएल/१३९/९ के माध्यम से भारत सरकार के रािपत्र में भाग-III, खंड-४ म,ें ५
फरिरी २०२० को प्रकाजित दकया गया।
4. पेंिन जनजध जिजनयामक और जिकास प्राजधकरण (पेंिन जनजध) (तीसरा संिोधन) जिजनयम, २०२० को
अजधसूचना संख्या पीएफआरडीए/१२/आरिीएल/१३९/९ के माध्यम से भारत सरकार के रािपत्र में भाग-III,
खंड-४ म,ें १४ मई २०२० को प्रकाजित दकया गया ।
5. पेंिन जनजध जिजनयामक और जिकास प्राजधकरण (पेंिन जनजध) (चौथा संिोधन) जिजनयम, २०२१ को अजधसूचना
संख्या पीएफआरडीए/१२/आरिीएल/१३९/९ के माध्यम स े भारत सरकार के रािपत्र म ें भाग-III, खंड-४ म,ें १
अप्रैल २०२१ को प्रकाजित दकया गया ।
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
NOTIFICATION
New Delhi, the 25th May, 2021
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PENSION FUND)
(FIFTH AMENDMENT) REGULATIONS, 2021
No. PFRDA/12/RGL/139/9.—In exercise of the powers conferred by sub-section (1) of section 52
read with clauses (e), (m), (n), (o) and (p) of sub-section (2) thereof of the Pension Fund Regulatory and
Development Authority Act, 2013 (23 of 2013), the Pension Fund Regulatory and Development Authority
hereby makes the following regulations to amend the Pension Fund Regulatory and Development Authority
(Pension Fund) Regulations, 2015 namely, -
1. These regulations may be called the Pension Fund Regulatory and Development Authority
(Pension Fund) (Fifth Amendment) Regulations, 2021.
2. These shall come into force on the date of their publication in the official gazette.
3. In the Pension Fund Regulatory and Development Authority (Pension Fund) Regulations,
2015: -
(I). In regulation 8, in sub-regulation (1), clause (d) shall be substituted as below-[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
“(d) the sponsors, individually or jointly, shall have a positive tangible net worth of at least fifty
crore rupees on the last day of each of the preceding five financial years and at least twenty-five crore
rupees should be the paid up equity capital on the date of making application as sponsor;”
SUPRATIM BANDYOPADHYAY, Chairperson
[ADVT-III/4/Exty./65/2021-22]
Footnote:
1. The Principal Regulations, The Pension Fund Regulatory and Development Authority (Pension
Fund) Regulations, 2015 were published in the Gazette of India on 19th May, 2015 vide notification
No. PFRDA/12/RGL/139/9.
2. The Pension Fund Regulatory and Development Authority (Pension Fund) (First Amendment)
Regulations, 2016 were published in the Gazette of India on 8th September, 2016 vide notification
No. PFRDA/12/RGL/139/9.
3. The Pension Fund Regulatory and Development Authority (Pension Fund) (Second Amendment)
Regulations, 2020 were published in the Gazette of India on 5th February, 2020 vide notification
No. PFRDA/12/RGL/139/9.
4. The Pension Fund Regulatory and Development Authority (Pension Fund) (Third Amendment)
Regulations, 2020 were published in the Gazette of India on 14th May, 2020 vide notification No.
PFRDA/12/RGL/139/9.
5. The Pension Fund Regulatory and Development Authority (Pension Fund) (Fourth Amendment)
Regulations, 2021 were published in the Gazette of India on 1st April, 2021 vide notification No.
PFRDA/12/RGL/139/9.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.