PENSION FUND REGULATORY AND DEVELOMENT AUTHORITYCentral

Section 6 of The Pension Fund Regulatory and Development Authority Act, 2013

(1)The Central Government may remove from office the Chairperson or any other member who--
1. (a)is, or at any time has been, adjudged as insolvent; or
2. (b)has become physically or mentally incapable of acting as a member; or
3. (c)has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
4. (d)has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or
5. (e)has, in the opinion of the Central Government, so abused his position as to render his continuance in office detrimental to the public interest.
(2)No such Chairperson or other member shall be removed under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.

Summary

The Central Government has the power to remove the Chairperson or any member from their position.
A member can be removed immediately if they go bankrupt, become physically or mentally incapable of doing the job, or are convicted of a crime involving bad moral character (moral turpitude).
A member can also be removed if they gain a financial interest that ruins their fairness, or if they abuse their power so badly that keeping them hurts the public.
If the government wants to remove a member for having a conflicting financial interest or for abusing their power, the government cannot do it instantly.
In those two specific cases, the member must be given a reasonable opportunity to be heard and defend themselves before a final decision is made.

Practical examples

1A member of the Authority secretly buys a large share in a major pension fund company. The government discovers this and decides to remove him because this financial interest hurts his ability to regulate fairly. Before firing him, the government calls him in for a hearing to explain himself.

2A member is in a severe car accident and suffers a permanent brain injury, making her mentally incapable of understanding complex financial documents. The government removes her from office to replace her with someone who can do the work.

FAQ

1. What does adjudged as insolvent mean?

It means a court has legally declared that the person is bankrupt and cannot pay their debts.

2. Does a member always get a hearing before being removed?

No. A hearing is only required if they are being removed for having a conflicting financial interest or for abusing their position. For things like a criminal conviction, no hearing is required by this section.

Test yourself

Q1.Under Section 6 of The Pension Fund Regulatory and Development Authority Act, 2013, which of the following is a valid ground for the Central Government to remove a member?

Q2.Under Section 6 of The Pension Fund Regulatory and Development Authority Act, 2013, in which situation MUST the government give a member a reasonable opportunity to be heard before removing them?

Q3.Under Section 6 of The Pension Fund Regulatory and Development Authority Act, 2013, who possesses the legal authority to remove a member from office?

Q4.Under Section 6 of The Pension Fund Regulatory and Development Authority Act, 2013, what justifies removal based on a member's financial interests?

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