Protesting PFRDA’s decision to reduce allocation of pension funds to it under NPS for organised sector from 55 per cent to 40 per cent, SBI Pension Funds has made a representation to the regulator.
The revised allocation of funds came into effect from May 1 and PFRDA has allocated around Rs 50 crore till date to the three fund managers. The other two players are UTI Retirement Solutions and LIC Pension Funds.
“Although, SBI’s pension funds performed well with a return of 16.38 per cent for 2008-09, PFRDA has decreased its share of pension funds to 40 per cent for 2009-10 from 55 per cent during the previous fiscal,” a pension industry source said. The source said the company has made a representation to PFRDA protesting the reduction in its share as funds this year were to be allocated on the basis of the performance.