PFRDA Notifies Amendments To NPST, Pension Fund Regulations For Good Governance

New Delhi: 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 05.02.2024 and 09.02.2024 respectively.

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

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

The other notable amendments inter alia include:

1. Clarity of roles of Sponsor of Pension Fund & Pension Fund along with compliance to ‘fit and proper person’ criteria.
2. Constitution of additional Board committees by Pension Funds such as the Audit Committee and Nomination & Remuneration Committee.
3. Inclusion of the name ‘Pension Fund’ in the name clause and requirement of an existing pension fund(s) to comply with these provisions within 12 months.
4. The annual report of schemes managed by the pension fund to include the Directors’ responsibility statement.

The amendments in key areas aim at simplification and reducing compliance. For detailed information on the amended regulations, please visit the PFRDA website:

NPS Trust: https://www.pfrda.org.in/myauth/admin/showimg.cshtml?ID=2883

Pension Fund: https://www.pfrda.org.in/myauth/admin/showimg.cshtml?ID=2891

The above amendments are in line with the Union Budget 2023-24 announcement to review regulations to reduce the cost of compliance and enhance the ease of doing business.