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The Pension Fund Regulatory and Development Authority (PFRDA) is understood to have shortlisted eight companies for managing pension funds of non-government employees for a period of five years.
"Eight fund managers, including LIC Pension Fund, SBI Pension Fund, UTI Retirement, Reliance Capital Pension Fund have been shortlisted by PFRDA yesterday for managing the funds of private sector NPS," sources said.
Other contenders include DSP Blackrock Pension Fund Managers, ICICI Prudential Pension Funds Management and Kotak Mahindra Pension Fund, sources said.
The pension fund regulator will issue letter of intent to the selected managers on April 25.
As per the Request for Proposal (RFP), the three existing managers for NPS of government employees were also asked to submit commercial bids only, while others were required to submit both technical and commercial bids.
According to sources, Reliance Capital Pension Fund turned out to be the lowest bidder.
To transparently and competitively determine key aspects like the Investment Management Fees (IMF), which have a significant impact on the terminal pension wealth of the subscribers, PFRDA, in the subscribers' interest proposes to appoint afresh, 8 competing professional Pension Funds (PFs) to manage the assets of the private sector NPS, RFP said.
The proposed appointment would be valid for a period of five years, it said.
"While the appointment of PF(s) shall be valid for five years, subject to review, for continuation at the end of every succeeding year of operation, on consideration of performance in compliance with stipulated conditions," it said.
The Central Government had introduced the New Pension System (NPS), now known as National Pension System with effect from 1 January 2004.
Initially, the New Pension System covered new entrants to Central Government services (excluding Armed Forces) and some State Government services.
From May 1, 2009, PFRDA has extended NPS to all citizens of India, including workers of the unorganised sector.
