With the Employees Provident Fund out of the purview of the new pensions regulator, most private sector employees will not be in its ambit.
The notification for setting up the Pension Fund Regulatory and Development Authority is expected to be issued soon after the budget session of Parliament is over.
Government officials said the body would be established by an executive order followed by legislation, the process followed in setting up other regulators like the Securities and Exchange Board of India and the Insurance Regulatory and Development Authority.
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The officials said the process should not take long because the Budget for 2003-04 had made a provision of about Rs 25 crore for the pensions regulator.
The Employees Provident Fund, which handles the provident and pension funds of more than 24.5 million private sector employees, will not come into the ambit of the new regulator for some years.
Government officials said this was largely because of turf battles, but hoped that the provident fund authorities would fall in line once the regulator started functioning. In its absence, the authority will regulate only the new government employees