Public Provident Fund (PPF) should be phased out over a period of time after the introduction of the new pension scheme proposed by the government, D Swarup, chairman of the interim Pension Fund Regulatory and Devlopment Authority (PFRDA), said today."A committee, headed by Rakesh Mohan of which I am a member, has recommended the phase out of PPF after the new pension scheme is launched,'' Swarup said on the sidelines of a Bengal Chamber of Commerce and Industry seminar on pension reforms in the city today.PPF offers a high administered return to investors and anybody can invest in it."Any pension scheme not covered under any statue of the country will come under purview of PFRDA," Swarup said.Swarup also intends to ban pension-based mutual funds from investing in foreign securities since there was no provision for overseas investments under the proposed investment schemes of pension funds.There are currently three schemes - safe, balanced and growth - where investment in equity instruments is regulated. In a safe fund, investment in equity can be up to 10%. PFRDA will announce a fourth plan in which 100% of the fund would be invested in government-guranteed papers after the standing committee on finance had recommended the new investment plan, he added.
