'PFRDA hopes the law will be enforced by Aug'

New Delhi, June 3: The Pension Fund Regulatory and Development Authority (PFRDA) expects the proposed PFRDA Bill, aimed at setting up a regulator and manage new pension system, to be introduced in the Parliament in the monsoon session and hopes the law will be enforced by August.

''PFRDA expects the proposed bill to be introduced in the Parliament in the monsoon session and hopefully the law will be enforced by August,'' PFRDA Chairman D Swaroop said.

The interim pension regulator was speaking on 'The Forever Young Forum', a series of introspective, on-ground events that seeks to educate investors around the country about the A-Z of retirement planning, organised by CNBC TV 18 last night.

Mr Swaroop said the new bill will provide the investor with choice of fund managers and investment options, but clarified it will not allow pension schemes to invest their money in individual stocks. The bill will only allow contribution to the pension funds to be invested in index funds in the stock markets, he added.

The individual is also allowed to switch from one fund manager to another or from one stock option to another like one year and two year option, he added.

He said the bill is less costly and will have a provision for risk free scheme, which will encourage the investors to put their money in government securities.

He also added it encourages labour mobility and will provide the investor with an account number irrespective of the organisation he or she is working.

As a regulator it was his duty to keep the costs at minimum, he said.

UNI