Pension Fund Regulatory and Development Authority (PFRDA) was established

by the Government of India on 10th October 2003 and by subsequent resolution

dated 14th November 2008 to promote old age income security by establishing,
developing and regulating pension funds, to protect the interests of subscribers
to schemes of pension funds and for matters connected therewith or incidental
thereto.
A. Functions of PFRDA:
1) To deal with all matters relating to promotion and orderly growth of
pension market;
2) To propose comprehensive legislation for the purpose indicated above;
3) To carry out such other functions as may be delegated to the Authority
for the purposes indicated in (1) and (2) above.
4) Regulating the NPS;
5) Educating the subscribers and the general public on issues relating to
pension, and training of intermediaries;
6) Adjudicating disputes between intermediaries as well as between
intermediaries and subscribers; and
7) Establishing mechanisms for grievance redressal of the subscribers.

 Pension Fund means an intermediary which has been granted a certificate of

registration as a fund for receiving contributions, accumulating them and
making payments to the subscriber, according to PFRDA (Pension Fund)
Regulations, 2014.
The National Pension System (NPS) is a defined-contribution-based pension
system launched by the Government of India with effect from 1 January
2004.
Apart from offering a wide gamut of investment options to employees, this
scheme helps the Government of India to reduce its pension liabilities. NPS
has defined contribution and individuals can decide where to invest their
money. The scheme is structured into two tiers:
Tier-I account: This NPS account does not allow premature withdrawal and is
available to all citizens from 1 May 2009.
Tier-II account: This NPS account permits withdrawal for exceptional reasons
only, prior to the retirement age.

B. Role of PFRDA:
1) PFRDA is the Regulator for the NPS:
PFRDA, the regulator for the NPS, is responsible for registration of various
intermediaries in the system such as Central Record Keeping Agency (CRA),
Pension Funds, Custodians, NPS Trustee Bank, etc. PFRDA shall also monitor the
performance of the various intermediaries and has a significant role to play in
safeguarding the interest of subscribers.
2) Appoint Various Intermediaries in the System:
PFRDA is responsible for appointment of various intermediaries in the system such
as Central Record Keeping Agency (CRA), Pension Funds, Custodians, Point of
Presence, Aggregator, Trustee Bank, Annuity Service Provider, NPS Trust etc.
PFRDA shall also monitor the performance of the various intermediaries.
3) Safeguarding the Interest of the Subscribers:
PFRDA has a significant role to play in safeguarding the interest of the subscribers.
It will regulate the manner in which such moneys are invested by PF(s) and will
make all efforts to ensure fair play for subscribers. It shall also ensure that all
stakeholders comply with the guidelines/regulations issued by PFRDA from time to
time