Section 23 of The Pension Fund Regulatory and Development Authority Act, 2013 — Pension funds
Bare section text
Official Legislative Text
- (1)The Authority may, by granting a certificate of registration under sub-section (3) of section 27, permit one or more persons to act as a pension fund for the purpose of receiving contributions, accumulating them and making payments to the subscriber in such manner as may be specified by regulations.
- (2)The number of pension funds shall be determined by regulations and the Authority may, in public interest, vary the number of pension funds: Provided that at least one of the pension funds shall be a Government company. Explanation.--For the purposes of this sub-section, the expression "Government company" shall have the meaning assigned to it in section 617 of the Companies Act, 1956 (1 of 1956).
- (3)The pension fund shall function in accordance with the terms of its certificate of registration and the regulations made under this Act.
- (4)The pension fund shall manage the schemes in accordance with the regulations.
Educational Study Layer
Summary
- The Authority permits entities to act as pension funds by granting them a certificate of registration under Section 27.
- The primary job of a pension fund is to receive contributions, accumulate them, and make payments to the subscriber.
- The total number of pension funds allowed to operate is determined by regulations, though the Authority can change this number in the public interest.
- The law strictly requires that at least one of these pension funds must be a Government company.
- Every pension fund must follow the regulations and the specific terms of its registration certificate when managing schemes.
Practical examples
FAQ
1. How does a company become an official pension fund?
It must be granted a certificate of registration under Section 27 by the Authority.
2. Can all the pension funds be completely private companies?
No, the law mandates that at least one of the pension funds must be a Government company.
3. Is there a fixed limit on how many pension funds can exist?
The exact number is determined by regulations, but the Authority has the power to vary the number in the public interest.
Practice Quiz
Q1.Under Section 23 and Section 27 of The Pension Fund Regulatory and Development Authority Act, 2013, what happens before an entity can lawfully accumulate contributions as a pension fund?
Q2.Under Section 23 of The Pension Fund Regulatory and Development Authority Act, 2013, which of the following is a strict statutory requirement regarding the composition of the group of pension funds?
Q3.Under Section 23 of The Pension Fund Regulatory and Development Authority Act, 2013, who decides the number of pension funds, and can that number change?
Q4.Under Section 23 of The Pension Fund Regulatory and Development Authority Act, 2013, what are the three core purposes of a pension fund mentioned in the text?