The Pension Fund Regulatory and Development Authority (PFRDA) is a pension regulator which was established by Government of India by an Act of Parliament on August 23, 2003 with the intent of regulating all pension products. The headquarter of PFRDA is at New Delhi and its Chairman is Sh. Hemant G Contractor. PFRDA is authorized by Ministry of Finance, Department of Financial Services. PFRDA promotes old age income security by establishing, developing and regulating pension funds and protects the interests of subscribers to schemes of pension funds and related matters. PFRDA is responsible for appointment of various intermediate agencies such as Central Record Keeping Agency (CRA), Pension Fund Managers, Custodian, NPS Trustee Bank, etc. NPS stand for National Pension System.
Some mutual funds and insurance companies also offer Pension plan or retirement plan which are not under the jurisdiction of PFRDA. Pension products floated by insurance companies come under the purview of the Insurance Regulatory and Development Authority (IRDA) while those sold by mutual funds are overseen by the SEBI. However, insurers and mutual funds continue to sell pension products outside its watch.
The normal retirement plan options include EPFO, Retirement gratuity etc. is offered by employers to their workers and employees. This creates confusion among consumers looking to build a retirement nest egg. The Finance Ministry has set up a high-level committee to consolidate the regulation of pension products that is currently being done by three different watchdogs including the insurance and stock market regulators.