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, 

  • The PFM’s have been diligent in empanelling the brokers, in monitoring securities transactions with brokers and avoiding undue concentration of business with any broker.
  • The PFM’s has not given any undue or unfair advantage to any associates or dealt with any of the associates of the Pension Fund in any manner detrimental to interest of the beneficiaries 
  • The PFM’s has been managing the Fund Schemes independently of other activities and has taken adequate steps to ensure that the interests of the beneficiaries are not compromised.
  • All the activities and the transactions of the PFM’s are in accordance with the provisions of the PFRDA guidelines/directions. 

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. 

  • SBI Pension Funds Private Limited
  • UTI Retirement Solutions Limited
  • LIC Pension Fund Limited  

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. 

  • SBI Pension Funds Private Limited
  • UTI Retirement Solutions Limited
  • ICICI Prudential Pension Funds Management Company limited
  • Kotak Mahindra Pension Fund Limited
  • Reliance Capital Pension Fund Limited
  • LIC Pension Fund Limited
  • HDFC Pension Management Company Limited  

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 31st July 2017, NPS has 
1.08 Cr subscribers with an AUM (Assets under Management) of Rs. 1,96,708.18 Crores.

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