THE PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY ACT, 2013
[Act No. 23 of 2013]
[18th September, 2013]
(An Act to provide for the establishment of an Authority to promote old age income security by establishing, developing and regulating pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.)
Be it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:--
Section 1. Short title, extent and commencement
(1) This Act may be called the Pension Fund Regulatory and Development Authority Act, 2013.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
Section 2. Definitions
(1) In this Act, unless the context otherwise requires,--
(a) "Authority" means the Pension Fund Regulatory and Development Authority established under sub-section (1) of section 3;
(b) "central recordkeeping agency" means an agency registered under section 27 to perform the functions of recordkeeping, accounting, administration and customer service for subscribers to schemes;
(c) "Chairperson" means the Chairperson of the Authority;
(d) "document" shall include any matter written, expressed or described upon any substance by means of letters, figures or marks, or by more than one of those means, in printed or in electronic version, which is intended to be used, or which may be used, by the Interim Pension Fund Regulatory and Development Authority, or Authority or an intermediary or any other entity connected with the National Pension System, for the purpose of recording that matter;
(e) "individual pension account" means an account of a subscriber, executed by a contract setting out the terms and conditions under the National Pension System;
(f) "Interim Pension Fund Regulatory and Development Authority" means the Interim Pension Fund Regulatory and Development Authority set up by the Central Government through Resolutions No. F. No. 5/7/2003-ECB & PR, dated the 10th October, 2003 and F. No. 1(6)/2007-PR, dated the 14th November, 2008;
(g) "intermediary" includes pension fund, central recordkeeping agency, National Pension System Trust, pension fund adviser, retirement adviser, point of presence and such other person or entity connected with collection, management, recordkeeping and distribution of accumulations;
(h) "member" means a member of the Authority and includes its Chairperson;
(i) "National Pension System" means the contributory pension system referred to in section 20 whereby contributions from a subscriber are collected and accumulated in an individual pension account using a system of points of presence, a central recordkeeping agency and pension funds as may be specified by regulations;
(j) "National Pension System Trust" means the Board of Trustees who hold the assets of subscribers for their benefit;
(k) "notification" means a notification published in the Official Gazette;
(l) "pension fund" means an intermediary which has been granted a certificate of registration under sub-section (3) of section 27 by the Authority as a pension fund for receiving contributions, accumulating them and making payments to the subscriber in the manner as may be specified by regulations;
(m) "Pension Regulatory and Development Fund" means the fund constituted under sub-section (1) of section 40;
(n) "point of presence" means an intermediary registered with the Authority under sub-section (3) of section 27 as a point of presence and capable of electronic connectivity with the central recordkeeping agency for the purposes of receiving and transmitting funds and instructions and pay out of funds;
(o) "prescribed" means prescribed by rules made under this Act;
(p) "regulated assets" means the assets and properties, both tangible and intangible, owned, leased or developed by and other rights belonging to, the central recordkeeping agency;
(q) "regulations" means the regulations made by the Authority under this Act;
(r) "scheme" means a scheme of pension fund approved by the Authority under this Act;
(s) "Securities Appellate Tribunal" means a Securities Appellate Tribunal established under sub-section (1) of section 15K of the Securities and Exchange Board of India Act, 1992(15 of 1992);
(t) "subscriber" includes a person who subscribes to a scheme of a pension fund;
(u) "Subscriber Education and Protection Fund" means the fund constituted under sub-section (1) of section 41;
(v) "Trustee Bank" means a banking company as defined in the Banking Regulation Act, 1949(10 of 1949).
(2) Words and expressions used and not defined in this Act, but defined in--
(i) the Insurance Act, 1938(4 of 1938);
(ii) the Companies Act, 1956(1 of 1956);
(iii) the Securities Contracts (Regulation) Act, 1956(42 of 1956); and
(iv) the Securities and Exchange Board of India Act, 1992(15 of 1992),
shall have the meanings respectively assigned to them under those Acts.
Pension Fund Regulatory and Development Authority
Section 3. Establishment and incorporation of Authority
(1) With effect from such date as the Central Government may, by notification, appoint, there shall be established, for the purposes of this Act, an Authority to be called the Pension Fund Regulatory and Development Authority.
(2) The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued.
(3) The head office of the Authority shall be in the National Capital Region referred to in clause (f) of section 2 of the National Capital Region Planning Board Act, 1985(2 of 1985).
(4) The Authority may establish offices at other places in India.
Section 4. Composition of Authority
The Authority shall consist of the following Members, namely:--
(a) a Chairperson;
(b) three whole-time members; and
(c) three part-time members,
to be appointed by the Central Government from amongst persons of ability, integrity and standing and having knowledge and experience in economics or finance or law with at least one person from each discipline.
Section 5. Term of office and conditions of service of Chairperson and members of Authority
(1) The Chairperson and every whole-time member shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment:
Provided that no person shall hold office as a Chairperson after he has attained the age of sixty-five years:
Provided further that no person shall hold office as a whole-time member after he has attained the age of sixty-two years.
(2) A part-time member shall hold office as such for a term not exceeding five years from the date on which he enters upon his office.
(3) The salary and allowances payable to, and other terms and conditions of service of, the members other than part-time members shall be such as may be prescribed.
(4) The part-time members shall receive such allowances as may be prescribed.
(5) The salary, allowances and other conditions of service of a member shall not be varied to his disadvantage after his appointment.
(6) Notwithstanding anything contained in sub-section (1) or sub-section (2), a member may--
(a) relinquish his office, by giving in writing to the Central Government, a notice of not less than thirty days; or
(b) be removed from his office in accordance with the provisions of section 6.
Section 6. Removal of members from office
(1) The Central Government may remove from office the Chairperson or any other member who--
(a) is, or at any time has been, adjudged as insolvent; or
(b) has become physically or mentally incapable of acting as a member; or
(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or
(e) has, in the opinion of the Central Government, so abused his position as to render his continuance in office detrimental to the public interest.
(2) No such Chairperson or other member shall be removed under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.
Section 7. Restriction on future employment of members
(1) The Chairperson and the whole-time members shall not, for a period of two years from the date on which they cease to hold office as such, except with the previous approval of the Central Government, accept--
(a) any employment either under the Central Government or under any State Government; or
(b) any appointment in any regulated entity in the pension sector.
(2) The Chairperson and the whole-time members of the Interim Pension Fund Regulatory and Development Authority holding the office as such before the commencement of this Act, shall not, on and after such commencement, accept any appointment in any regulated entity in the pension sector for a period of two years from the date on which they cease to hold office as such, except with the previous approval of the Central Government.
Section 8. Administrative powers of Chairperson
The Chairperson shall have the powers of general superintendence and direction in respect of all administrative matters of the Authority.
Section 9. Meetings of Authority
(1) The Authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be provided by regulations.
(2) The Chairperson or, if for any reason, he is unable to attend a meeting of the Authority, any other member chosen by the members present from amongst themselves at the meeting, shall preside at the meeting.
(3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes by the members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding shall have a second or casting vote.
(4) If any member, who is a director of a company and who as such director, has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Authority, he shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and such disclosure shall be recorded in the proceedings of the Authority, and the member shall not take part in any deliberation or decision of the Authority with respect to that matter.
Section 10. Vacancies. etc., not to invalidate proceedings of Authority
No act or proceeding of the Authority shall be invalid merely by reason of--
(a) any vacancy in, or any defect in the constitution of, the Authority; or
(b) any defect in the appointment of a person acting as a member of the Authority; or
(c) any irregularity in the procedure of the Authority not affecting the merits of the case.
Section 11. Officers and employees of Authority
(1) The Authority may appoint such officers and other employees as it considers necessary for the efficient discharge of its functions under this Act.
(2) The terms and other conditions of service of officers and other employees of the Authority appointed under sub-section (1) shall be such as may be determined by regulations.
Extent and Application