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The Pensions Funds Regulatory and Development Authority (PFRDA) Bill was finally reintroduced into the Indian Parliament on March 24, 2011.  PFRDA has been supervising pension funds since 2003. In 2004, the organization was introduced into Parliament, but failed to garner enough support to pass as a governmental body.  It currently functions as an interim pension regulator.  For the past seven years, the PFRDA has managed pension funds for roughly 11% of India’s workforce. Currently, the other estimated 89% do not have pension funds.

However, the Bill’s supporters want the PFRDA under the control of Parliament, as it currently lacks legislative power and stability.  As a governmental organization, it will be able to promulgate guidelines and levy penalties.

The proposed Bill will give the PFRDA statutory powers to monitor and expand India’s pension industry.  Companies will be allowed to manage government pension funds. Additionally, pension funds will be able to invest in the stock market.  The Bill could also potentially authorize the use of private funds for pensions, and decrease future pension liabilities for the Indian government.  Experts speculate that the Bill will permit at least 26% foreign investment in the sector, though foreign companies will probably not be allowed to administer pension funds. 

Although the PFRDA Bill failed to pass through Parliament in 2004, experts strongly believe it will be approved in 2011, as the Bharatiya Janata Party, its former chief opponents, now supports it.  Overall, the Bill is expected to provide many more Indian workers with pension funds, and augment investment in Indian infrastructure, healthcare, and education.