Recently, Parliament has passed The
Pension Fund Regulatory and Development Authority Bill, 2013 (“Pension
Bill”) which seeks to provide for the establishment of a statutory Pension Fund
Regulatory and Development Authority (PFRDA) to promote old age income security.[1] The
Bill, which is divided into 10 chapters and 56 clauses, has the following key features:
Pension
Fund Regulatory and Development Authority (Chapter II): The
Bill provides for the establishment of the Pension Fund Regulatory and
Development Authority (“Authority”) with its head office in the National
Capital Region. The members of the Authority will be appointed by the Central
Government and there shall be one member each from the field of economics,
finance, law or administrative matters. Apart from the Chairperson, there will
be three whole-time and three part-time members. While Chairperson and
whole-time members will hold the office for a period of five, the tenure of a
part-time should not ‘exceed’ five years.
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Clause 6 of the Pension Bill provides for the
conditions (five conditions in total) which can lead to the removal of the
Chairperson or any other member of the Authority. If sought to be removed for
acquiring interest which is prejudicial to the function as a member or for the
reason that his continuance in the office is against public interest, the
concerned member will be given an opportunity to be heard.
