Govt plans panel to search for pension regulator chief

NEW DELHI: The government is set to constitute a search committee to select the chairman of the latest regulator in India — the Pension Fund Regulatory and Development Authority (PFRDA). The search panel will include the RBI governor and the finance secretary.
The interim PFRDA is to be set up through an executive order. The PFRDA chairman will have a status equivalent to at least a secretary to the government of India.
Over the last few years, except in the case of the Central Electricity Regulatory Commission (CERC) those heading regulatory agencies have generally been those nominated by the government. In a majority of cases, the choice had fallen on babus who were either on the verge of retirement or had retired from the government reinforcing the belief that it has become a parking slot for babus seeking a post retirement sinecure.
The plan to set up a search committee is therefore being viewed as an attempt by the government to look at a wider choice of candidates including professionals to take over the job of a watchdog.
For CERC, its charter itself sets out the process of selecting the chairman and other members. The CERC chairman is appointed by the government based on the recommendations of a selection committee consisting of the member, Planning Commission in charge of energy, the secretary, department of legal affairs in the law ministry, the power secretary, chairman of the Public Enterprises Selection Board and the chief of a public financial institution.
Besides the chairman, the interim PFRDA is expected to have four members including two who would be serving on a full time basis. These would be from among those having experience and knowledge in areas like economics, finance, legal and administrative matters.