Who will be the pension fund manager?
A pension fund manager will be a subsidiary specifically floated for managing the pension scheme funds by entities with at least five years of fund management experience and adequate financial strength. The interim Pension Fund Regulatory and Development Authority has begun the process of shortlisting the sponsors of PFMs. It has called for expressions of interest from public sector entities for sponsoring fund managers. The selected sponsor will have to incorporate a pension fund manager as a separate public sector company. The PFRDA’s decision to allow only public sector entities to pitch for being a PFM has irked private sector entities keen on sponsoring a PFM. The PFRDA had earlier said it would appoint a limited number of leading professional firms to act as PFMs and one of these PFMs will be a public sector agency. The number of PFMs is likely to be capped at four. A final call is expected to be taken after the PFRDA Bill is passed by Parliament. LIC, SBI Mutual Fund and UTI Mut
