PFRDA appoints 23 entities as Points of Presence

Following the board’s approval, Pension Fund Regulatory and Development Authority (PFRDA) appointed 23 entities as Points of Presence (POPs) that includes 17 banks.

Among the banks, State Bank of India and its six associates, Union Bank of India, Allahabad Bank, Oriental Bank of Commerce, IDBI Bank have been appointed as POPs.

Private sector lender like ICICI Bank, Kotak Mahindra Bank and foreign bank Citibank will also function as a front office for the New Pension System for all citizens other than government employees.

Other entities which would take up front office jobs like selling of pension products and collecting premiums include LIC, UTI Asset Management Company, Reliance Capital and Bajaj Allianz General Insurance.

The regulator is planning to launch pension scheme for the unorganised sector from April 1, 2009. The pension scheme is expected to operate under the defined contribution scheme as against the earlier defined benefit scheme.

In addition to this, the regulator has already appointed six fund managers — UTI Retirement Solutions, SBI Pension Fund Ltd, ICICI Prudential Life Insurance, Reliance Capital AMC, IDFC AMC and Kotak Mahindra AMC.

The fund manager will be appointed for a period of three years on the basis of technical and financial bid. The subscribers also has the option to change their fund managers.