The Pension Fund Regulatory and Development Authority (PFRDA) has fixed a fresh date of April 1, 2009, to launch pension funds for all Indian citizens. At present, only government employees who joined service on or after January 1, 2004, are subscribers to the new pension scheme launched by three state-owned pension fund managers — State Bank of India, Life Insurance Corporation and ITI Mutual Fund.

PFRDA chairman D Swarup told The Indian Express that a committee chaired by HDFC chairman Deepak Parekh to formulate investment guidelines for the pension schemes for private citizens has sought another month to submit its report to the regulator. The original deadline for report submission was November 30. “But the committee, which met last week, has sought another month,” Swarup said.

According to Swarup, work is underway to call for expression of interest (EoI) from a new set of private sector fund managers besides the existing three. “The EoI will be called by mid-December. And in six weeks from then, we will appoint the new pension fund managers,” he said.

The PFRDA had originally hoped to launch the pension scheme for both organised and unorganised sector workers by the first quarter of next calendar year. It has now postponed the launch to April 1, 2009. About 4-5 new pension fund managers would be appointed.

The investment options will include equity, balanced and income pension funds depending on a subscriber’s age and risk-taking appetite. The new investment guidelines will be distinct from those followed by the new pension scheme (NPS) available for government employees.

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