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India’s Pension Fund Regulatory and Development Authority announced changes to the government’s new pension scheme, Global Pensions reports. The government aims to change annual reviews of fund managers and establish portable, individual member accounts.
The PFRDA hired three pension fund sponsors who will handle asset management functions for a fee between three and five basis points: State Bank of India, UTI Asset Management Company and Life Insurance Corporation. During the three-year contract, firms will be subject to annual reviews based on returns yielded and fees charged. Review results will determine how the funds are distributed. Also part of the new scheme, set to go live next summer, is the plan to grant all public sector employees receive a permanent retirement account number they can use across jobs and geographical locations.
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