Functions of NPS Trust
In fulfillment of its objectives, as broadly mentioned in the Deed, the NPS Trust supervises the Pension Fund Managers (PFM’S) and interacts with other intermediaries like Trustee Bank (Axis Bank), Central Record Agency (NSDL), Stock Holding Corporation of India Ltd, etc. The Trust is empowered to enter into agreements with other intermediaries and operating agencies to discharge its obligations.
As part of its obligations, the NPS Trust ensures that,
A memorandum of Understanding was signed between PFRDA and the NPS Trust highlighting the rights and obligations of both the parties on 1st July 2009.
To begin with the NPS was operational for the Central Government Employees (except defense forces) joining the service on after 1.1.2004. Subsequently the State Governments have also started joining the NPS. Three Fund managers have been appointed to manage the Funds of the Government employees from 1.1.2008.
The NPS was opened up for all citizens of India with effect from 1st May 2009. Presently the following Seven Pension Fund Managers are managing the funds of unorganized sector.
Agreements with all the Pension Fund Managers have been signed. Agreement has also been signed with the Stock Holding Corporation of India who acts as custodian of investment Instruments. So far Twenty Six State Governments /UT have joined the NPS by signing the agreement with the NPS Trust. More State Governments have shown their inclination to join the NPS Architecture.
A quarterly review of the Pension Fund managers is carried out by the NPS Trust to review and evaluate the performance of the Fund Managers and make suggestions for improvement.
As on 28th February 2017, NPS has 1.04 Cr subscribers with an AUM (Assets under Management) of Rs. 1,65,983.74 Crores.