Pension reforms to be long-term saving, security: Survey

Pension reforms will lead to long term savings and will also create a sustainable social security system, the Economic Survey 2011-12 said.

"Pension reform is important. It will not only facilitate the long-term savings for development but also help establish credible and sustainable social security system in the country," the survey said.

Last year, the Economic Survey 2010-11 had also advocated reforms in the pension sector and said, "There is a need to consider passage of the long pending Pension Fund Regulatory and Development Authority (PFRDA) Bill in order to give a fillip to regulatory robustness in the pension sector."

The Pension Fund Regulatory Development Authority (PFRDA), set up as a regulatory body for pension sector, is yet to get statutory powers as the Bill for the purpose is still pending in Parliament.

The Parliamentary Standing Committee on Finance has given its recommendations on the bill and the draft legislation has also got the Cabinet nod. It could be taken up for debate during the ongoing Budget session.

Earlier the Bill for the pension reforms lapsed in the Parliament with the expiry of last Lok Sabha in 2009. Interim PFRDA is functioning since 2003 through an executive order.