Pension funds face quarterly review
Funds under the New Pension Schemes (NPS) managed by SBI Pension Fund — an arm of State Bank of India — has outperformed its rivals for the fiscal gone by, data on the pension regulator’s website revealed. Pension laws mandate that fresh annual allocations to fund managers be made on the basis of their performance in the past year.
Pension Fund Regulatory and Development Authority (PFRDA) has now instituted an independent, quarterly review of the seven pension funds for monitoring their performance and compliance to investment guidelines. Morningstar, a mutual fund data research firm, will be conducting periodic reviews on fund managers, its CEO Aditya Agarwal told ET.
SBI Pension Fund has performed better than its rivals with highest net asset value for both central and state government scheme in 2009-10. For Central government employees schemes, SBI Pension Fund NAV ended March 31 at 12.77, LIC Pension Fund at 12.35 and UTI at 12.33, according to the PFRDA website.
Employee’s Provident Fund Organisation (EPFO) has traditionally provided retirement benefits to government employees. However, civil servants, who were recruited after 2004, are now part of the NPS — a system aimed at encouraging private fund managers. According to estimates, its current corpus stands at around Rs 4,700 crore.
Up for grabs now are their contributions this year — expected to be in the Rs 2,400-crore range. PFRDA allocates fresh accretions every April, depending on the performance of each of the three funds.
In the first year of NPS, PFRDA allocated only Central government employee contributions and last year, it additionally allocated funds to state government pension funds. For state government schemes, SBI Pension Fund’s NAV stood at 10.63, LIC Pension at 10.60 and UTI at 10.59, as per PFRDA data.
Industry officials say the pension fund allocation of Central and state government employees is expected to take place sometime in the second or third week of April. Last year, the allocation was made sometime in May. For 2009-10, PFRDA has allocated 40% to SBI Pension, 31% to UTI Pension and 29% to LIC Pension.
Under NPS, employees have to contribute 10% of their basic salary and dearness allowance, with a matching contribution from their employers. The NPS was thrown open to the unorganised sector last year and private players were also allowed to operate as fund managers. However, the response to NPS from the general public has been modest.
In addition to SBI, LIC and UTI, ICICI Prudential, IDFC, Kotak and Reliance MF also manage pension funds.
Pension funds face quarterly review
PME Due Date
Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974
Subject: Implementation of the Recommendations of the Visual Sub-Committee.
6. Periodical re-examination of serving Railway Employees:
6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:
6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.
Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.
(a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.
(b) Absence from duty for a period in excess of 90 days.
(2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.
If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.
Ammendment: It was ammended in 1993 as below
Age Group PME Due
Age 00-45 every 4yrs
Age 45-55 every 2yrs
Age 55-60 every year
As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993
a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of
NRMU 4 you
6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.