PFRDA

sree nivas March 2, 2022 GS2 Leave a comment 719 Views

The Pension Fund Regulatory and Development Authority (PFRDA) has proposed a guaranteed return scheme, Minimum Assured Return Scheme (MARS), which will provide savers and people from the salaried class an option for their investments.
This will be the first scheme from the pension regulator that will offer a guaranteed return to investors.
India’s pension assets under management have already crossed the Rs 7-lakh crore mark and are expected to touch RS 7.5-lakh crore by end March this fiscal 2021-22.
PFRDA is aiming for an AUM (Assets Under Management) of Rs 30-lakh crore by 2030

PFRDA’s Proposal under MARS

To have a separate scheme that can offer a guaranteed minimum rate of return to NPS (National Pension System) subscribers, especially those who are risk averse.
Currently, the NPS gives returns annually, based on prevailing market conditions.
The actual returns will depend on the market conditions. Any shortfall will be made good by the sponsor, and the surplus will be credited to the subscribers’ account.
The Central Government introduced the NPS with effect from January 2004 (except for armed forces).
In 2018 to streamline the NPS and make it more attractive, the Union Cabinet approved changes in the scheme to benefit central government employees covered under NPS.
NPS is implemented and regulated by PFRDA.
National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.

Tier-I account:

This is the non-withdrawable permanent retirement account into which the accumulations are deposited and invested as per the option of the subscriber.

Tier-II account:

This is a voluntary withdrawable account which is allowed only when there is an active Tier I account in the name of the subscriber.
The withdrawals are permitted from this account as per the needs of the subscriber as and when claimed.

Beneficiaries:

NPS was made available to all Citizens of India from May 2009.
Any individual citizen of India (both resident and Non-resident) in the age group of 18-65 years can join NPS.
However, OCI (Overseas Citizens of India) and PIO (Person of Indian Origin) card holders and Hindu Undivided Family (HUFs) are not eligible for opening of NPS accounts.

Pension Fund Regulatory and Development Authority

It is the statutory Authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the National Pension System (NPS).
It works under the Department of Financial Services under the Ministry of Finance.
It performs the function of appointing various intermediate agencies like Pension Fund Managers, Central Record Keeping Agency (CRA) etc.
It develops, promotes and regulates the pension industry under the NPS and also administers the APY.
Recently, the Chandigarh Municipal Corporation has approved a proposal to amend Article 80 of the Constitution so that its councillors could send a representative to the Rajya Sabha.
Article 80 of the Constitution of India deals with the composition of the council of states also called the Upper House and Rajya Sabha (Upper House).
So far, Chandigarh has no representation in the Rajya Sabha.
The bill (Private Member Bill) sought the adding of a provision “provided that the representative of the Union Territory of Chandigarh in the council of states shall be elected by an electoral college.
The electoral college should consist of elected members of the Municipal Corporation of Chandigarh constituted under the Punjab Municipal Corporation (Extension to Chandigarh) Act, 1994 in Article 80 of the Constitution..
An amendment has also been sought to the Fourth Schedule of the Constitution with ‘Entry 32, Chandigarh.
The fourth Schedule contains provisions as to the allocation of seats in the Council of States.
It contains the number of seats represented in the Council of states (Rajya Sabha) from each State and Union Territory.
Chandigarh is a Union Territory without any legislative assembly and has a seat of Member of Parliament (MP) in the Lower House (Lok Sabha) or House of the People.
Chandigarh residents elect an MP every five years through direct voting.
The union territories of Puducherry, Jammu and Kashmir and the National Capital Territory of Delhi have representation in the Rajya Sabha, while Ladakh, Chandigarh, Dadra and Nagar Haveli — Daman and Diu, Andaman and Nicobar Islands and Lakshadweep are unrepresented in the upper house.

Legal Objections

The elected Municipal Corporation Councillors do not form the electoral college for selecting a member for Upper house (Rajya Sabha) because it is beyond the powers of the Municipal Corporation.
Between 1966 and 1990, MPs for Rajya Sabha in Delhi were selected by the members of the Metropolitan Council of Delhi.
There is a difference between the Metropolitan Council and Municipal Corporation.
There is also a distinction between the electoral college of legislatures and electoral college of MC councillors.
Also Chandigarh has no legislative Assembly like Delhi, which also is a Union Territory, and the city also lacks a metropolitan council, which exists in the national capital.
Also, selecting Rajya Sabha MP, is beyond the listed scope of functions of the municipal corporation.
If the functions of the civic body are to be extended beyond the listed scope of functions it would not be feasible and would go against the constitutional mandate of any such Municipal Corporation.
As the civic body gave its assent to the amendment, UT Administration will send it to the Ministry of Home Affairs for further consideration and then it will be forwarded to the Parliament.

A private member bill

Any MP who is not a minister is referred to as a private member.
Its drafting is the responsibility of the member concerned. Its introduction in the House requires one month’s notice.
The government bills\public bills can be introduced and discussed on any day, private member’s bills can be introduced and discussed only on Fridays.
In case of multiple Bills, a ballot system is used to decide the sequence of bills for introduction.
The Parliamentary Committee on Private Member’s Bills and Resolutions goes through all such Bills and classifies them based on their urgency and importance.
Its rejection by the House has no implication on the parliamentary confidence in the government or its resignation.
Upon conclusion of the discussion, the member piloting the bill can either withdraw it on the request of the minister concerned, or he may choose to press ahead with its passage.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT

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