Thiruvananthapuram: Following the introduction of the Pension Fund Regulatory and Development Authority (PFRDA) Bill, 2011 in Lok Sabha, Kerala Chief Minister V S Achuthanandan on Saturday urged the Centre to back out from its move to "privatise" the pension scheme of central and state government employees.
The PFRDA Bill that was introduced in Parliament on Thursday was a move towards privatising pension, and if passed, pension for Central and State government employees would no longer have government guarantee, the Chief Minister said in a statement here.
The first UPA government had also tried to "privatise" the pension scheme, but the plan was dropped due to stiff resistance from the Leftist parties, the statement said.
Achuthanandan said employees should come out with strong protest against the Centre's move.
The Bill, introduced by Finance Minister Pranab Mukherjee, provides for establishing a statutory regulatory body to be called the Pension Fund Regulatory and Development Authority (PFRDA), which will undertake promotional, developmental and regulatory functions in respect to pension funds.
According to the statement of objects and reasons of the Bill, foreign investment policy for pension sector intermediaries, including the pension funds and central record-keeping agency, would be determined and notified outside the proposed legislation under Foreign Exchange Management Act.
The Bill also contains provisions for empowering the PFRDA to regulate the National Pension system (NPS), as amended from time to time. Moreover, it authorises the PFRDA to levy fees for services rendered by it to meet its expenses.
The pension fund regulator can also impose penalties for any violation of the provisions of the legislation, rules, regulations, etc, once the Bill is passed.