| "If you have an existing pension plan it will not come under the regulatory purview of the PFRDA. But insurance firms and MFs will not be allowed to offer any pension plan unless they come under its regulatory control," Swarup, who was addressing a conference on India Pensions: Challenges Ahead at IIM-Bangalore said. |
| Swarup said the provisions of the Bill did not allow PFRDA's jurisdiction to extend to any pension plan controlled by the Insurance Regulatory and Development Authority (IRDA) and the Securities and Exchange Board of India (Sebi). |
| At present, while insurance products offered by mutual funds are regulated by the market regulator Sebi, those of insurance companies are regulated by insurance regulator IRDA. |
| He, however, said the Bill was not very clear on whether insurance companies will be allowed to continue with their pension business. |
| "It is yet to be decided if they need to set up a separate company for their pension business. But, obviously, it is clear the same company which deals in insurance, will not be allowed to do so in pension unless we have a bill permitting the same or they float a separate legal entity for their pension business," he added. |
| He said the PFRDA Bill, which aims at setting up a regulator for managing the pension system, might come up for discussion during the monsoon session of the Parliament and before becoming an Act. |
| Swarup said 70 per cent of the country's workforce belongs to the unorganised sector and they do not have any pension plan. |
| "Bringing people in the unorganised sector under the pension umbrella is the biggest challenge. PFRDA will take steps to sensitise people through awareness initiatives and education to achieve this objective," he added. |
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