As per the provisions of the PFRDA Act, Rules and Regulations, the Pension Funds are responsible for:
- investing the contributions received
- accumulating the contributions
- managing the pension corpus through various schemes under the NPS
You can select the Pension Fund and investment pattern of your choice at the time of registration under NPS.
Functions of Pension Funds
Management of Pension Schemes
The function of a Pension Fund is to manage pension schemes in your best interest as per the regulations, guidelines and circulars issued by PFRDA. The service levels of pension funds are monitored by NPS Trust.
Rendering high standards of services
The Pension Fund is responsible for providing a high standard of service to you. This includes exercising reasonable care, prudence, professional skill, promptness, diligence and vigilance while managing the pension schemes.
Employment of professionals
The Pension Fund employs well-qualified professionals and staff with high integrity and are also responsible for the acts of omissions or commissions of its employees or authorized persons whose services have been availed.
Facilitating and coordinating with other intermediaries
The Pension Fund coordinates with other intermediaries and entities through agreements and technological platforms for undertaking its obligations.
Maintaining books of accounts
The Pension Fund maintains books of accounts, records, registers and documents relating to the operations of the pension schemes. This is important to ensure compliance with the rules and regulations, as well as to facilitate an audit trail of transactions and business continuity at all times.
Submission of reports
The Pension Fund submits periodical and compliance reports as required by the PFRDA / NPS Trust.
Public disclosure
The Pension Fund undertakes public disclosure of information for the benefit of all subscribers as prescribed by PFRDA.
Best Governance practices
The Pension Fund is required to adopt best governance practices for investment and risk management. This includes constituting an Investment Committee and a Risk Committee and setting out the composition, functions, policy contents and other matters as prescribed by PFRDA.
Prevention of conflict of interests
The Pension Fund is required to prevent any conflict of interest that may arise while discharging its obligations and report any instances to the NPS Trust.
Exclusivity and segregation of Pension Fund business
The Pension Fund is required to ensure that its business activities are exclusive and segregated from its sponsors.