PFRDA expects transfer of pension money to MFs by April 1

NEW DELHI: Paving the way for investing a part of around Rs 4,500-crore retirement money of government staff in capital markets, interim pension regulator PFRDA expects the Centre and 19 states to transfer the money under New Pension Scheme to three fund managers by April 1, 2008.

"We are hopeful that the NPS contributions of the employees of the central government and 19 state governments would be transferred to these fund managers by the respective governments by the beginning of next financial year," PFRDA Chairman D Swarup said here.

If this happens, PFRDA hopes to operationalise the NPS by June 1, including the keeping of records by the National Securities Depository Limited (NSDL).

"PFRDA is engaged in the process of registration of the NPS Trust and appointment of a Custodian and a Trustee bank. It is expected that by May 31, 2008, the entire NPS architecture will be in place in respect of the government employees," Swarup said.

PFRDA has appointed SBI, LIC and UTI Mutual Fund to manage funds under NPS, applicable to the central government employees from January 1, 2004. As many as 19 state governments also have adopted NPS.

The three fund managers have already incorporated their pension funds as new companies under the Companies Act, and are expected to start work by March 31, Swarup said.

The three pension funds will be performing the investment management functions under the NPS for a fee varying from three to five basis points, he said.