FEDERATION OF NATIONAL POSTAL ORGANISATIONS

Government is planning to invest the Pension Funds in the share market

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA

QUESTION NO 204
ANSWERED ON 19.11.2019

Investment of Pension Funds in share market

204 Shri Ritabrata Banerjee

Will the Minister of FINANCE be pleased to state

(a) whether Government is planning to invest the Pension Funds in the share market; and

(b) if so, the details thereof and the reasons therefor?

ANSWER

The Minister of State (Finance)

(a) & (b) Section 14 (2) (b) of the Pension Fund Regulatory and Development Authority Act, 2013 (PFRDA Act), empowers PFRDA to formulate investment guidelines for National Pension System (NPS) and pension schemes to which the Act applies. The pension funds under the NPS are invested in various asset classes including Government Securities, Corporate Debt instruments, and Equities as per the investment guidelines issued by PFRDA in this regard.

The Employees’ Provident Fund Organisation (EPFO) under Ministry of Labour has informed that the Central Board of Trustees’, Employees Provident Fund in its 207th meeting held on 31.03.2015 decided to invest in Exchange Traded Funds in the category of Equity and related investments (Category (iv) of Investment Pattern notified on 23.04.2015) so as to generate higher returns for EPF members.

Source: https://rajyasabha.nic.in/