Feedback/Comments received from Stakeholders/General public on Draft Pension Fund Regulatory and Development Authority ( Redressal of Subscriber Grievance) Regulations, 2014 Sr. No. Suggestions given by 1. Name: Vishnu Address-P-1/114 Sultan Puri, Delhi-110086 Organisation- North Municipal Corporation of Delhi Post Working as a Primary Teacher Ref. Point of the regulation Feedback/comments Received 1.The PAO,prPAO,DDOS also should be the part of this mechanism many PAO,prPAO,DDOS are not following proper mechanism due to this many Subscriber lose there money/less unit of nav there should be HARD PENALTY FOR PAO, prpao,ddos FOR NOT FOLLOWING PROPER GUIDELINES OF PFRDA AND LATE TRANSFER OF FUNDS TO CRA. Rationale given 2. THERE SHOULD BE A MAXIMUM TIME OF ONE MONTH FOR THE TRANSFER OF FUND TO CRA FOR PAO,prPAO,DDOS 3. WHERE LOSS TAKE PLACE OF THE Subscriber THERE SHOULD BE A PROVISION FOR FULLY COMPENSATING THIS LOSS OF SUBSCRIBER BY GOVT/PAO/PR.PAO/PFRDA/THOSE WHO ARE GUILTY FOR THIS LOSS 4 FOR Ombudsman THERE should be a maximum time LIMIT for disposing the complaint not more than 60 days after 1
receiving of complaint 5 There should be online,and online both mode are should be included for complaint to Ombudsman 6 In cra there is a provision for complaint after log-in in cra this mechanism is very weak it should be strengthen 7 It should be in mind of our very clear that NPS is a social security for old age person where no source of income is for govt servant therefore the mechanism for Redressal of Subscriber Grievance is very effective and very hard for those who are not following rules and regulation 2. CRA 2.g Definition of 'other pension scheme' It is observed that the definition of 'other pension scheme' is available only in the Grievance Redressal regulations. This may be included in all appropriate regulations as well. 3 In case of NPS, the NPS Trust shall lay down detailed guidelines and procedures for a two level grievance redressal policy for intermediaries and other entities with minimum conditions as referred in regulation 4 under NPS and be responsible for the overall grievance management system. The term 'two level grievance redressal policy" may be elaborated further for better clarity. 2
3 ICICI Pension Fund General comments Redressal of Subscriber Grievances Grievance redressal regulation in case of CRA Customer grievances should be received only by the intermediaries who are acting as customer interface i.e. POP and CRA. Record the grievances in CRA system for suitable tracking and closure. The CRA may forward customer grievances which pertains to PFMs, Trustee Banks, Custodians or NPS trust on case to case basis, if applicable. It is understood that in case of CRA, the applicability of the Grievance Redressal Regulations would be as per the provisions for handling of Grievances in the Contract and the Service Level Agreement executed between CRA and PFRDA Intermediaries such as CRAs, Point of Presence (POPs), Aggregators and such other entities which are involved in providing services to the subscribers and acting as an interface between the subscriber and PFRDA, should ensure implementation of the said grievance mechanism. However, PFMs, Trustee Bank and Custodians are primarily involved in the activity of maintaining the funds of the subscribers and are not acting as direct interface for the customer. In view of the same, we suggest that the customer grievances should be ideally received only by the intermediaries who are acting as customer interface. Further, to improve the management of customer grievances in a centralised manner, the Authority may consider recording such grievances in CRA system for suitable tracking and closure. Additionally, the CRA may certainly forward such customer grievances which pertains to PFMs, Trustee Banks, Custodians or NPS trust on case to case basis, if applicable. Redressal of Subscriber The guidelines regarding redressal of Insurance companies should not be covered 3
4. Shri Michael K. Touthang Grievances 2(j):Intermediaries under NPS includes pension fund, central recordkeeping agency, NPS Trust, PF adviser, retirement adviser, PoP and such other person or entity connected with collection, management, recordkeeping and distribution of accumulation. Redressal of Subscriber Grievances - 4 (1) Every intermediary under NPS and every other pension scheme regulated by the Authority shall have a two level grievance redressal policy. Redressal of Subscriber Grievances 9: The Grievance Redressal Policy should provide for automated systems to enable online registration, tracking of status of grievances and periodical reports as prescribed by the Authority. The system should also be so designed that it can integrate seamlessly with the Authority subscriber grievances should not apply to Insurance Companies appointed as annuity service providers as IRDA guidelines cover this function Guidelines should explain as to what are the proposed two levels of grievance redressal policy PFMs and all other intermediaries should use the CRA system for grievance redressal for tracking and closure of grievances (a) Once the subscriber raises any grievance, mail to be sent to PAO & Pr. in the regulations as insurance companies have mechanisms in place to address such grievances under IRDA regulatory framework. Setting up of a separate system for tracking of grievance may add to the costs that would be borne by the customers ultimately. (a) Pr. AO may have instant information about any grievance raised against their 4
Asst. Controller CDA (Guwahati) AO concerned in detail including type of grievance. (b) 10 days time period to be decided for grievance redressal at the PAO level. On non-compliance, again a mail should be sent to Pr. AO for appropriate action. (c) After the lapse of 10 working days the subscriber can appeal to the Pr. AO for grievance resolution who will act as the Ombudsman. PAO. (b) There should be enough time at the PAO level to resolve the grievance. (c) Since Pr. AO is the monitoring authority over PAO, he has the resources to be the Ombudsman. (d) Regarding penalty, it should be recovered at Rs. 200/- per day till the grievance is resolved. 6 NPS Trust Regulations 3 (1) Every intermediary under the National Pension System and every other pension scheme regulated by the Authority shall follow the Grievance redressal Policy as laid down under these regulations. In case of National Pension System (NPS), the CRA will maintain a Central Grievance Management System and each intermediary of NPS will ensure electronic connectivity with this system. The Authority / NPS Trust will prescribe reporting and monitoring system for Subscriber Grievance redressal and will periodically conduct periodic review and perform oversight on the grievance management System in respect of Schemes of NPS. (d) As the 10 day time is sufficient to solve any grievance, penalty will be a mechanism to make the authority accountable to their work especially for grievance redressal. Rationale for the Proposed Changes: 1. Each intermediary of the NPS is required to have a grievance redressal policy and file the same with the Authority in terms of Clause (4) of the regulation. 2.The detailed guidelines / procedure for the same also has to be defined by the concerned intermediary and approved by the Authority as all the intermediaries are appointed by the Authority & not the Board of NPS Trust. 3. The CRA currently manages a Central Grievance Management System (CGMS) and 1.provision for the same has also been included in the Draft Regulations of CRA vide 5
Regulations 13 Regulations 16(2) The following para should be deleted:- Provided that the disqualification provided in clause (v) shall not be applicable in case of a person who has been the whole time director of a public sector undertaking. (The explanation cited under the above cited paragraph also require to be deleted) Rephrase the clause as follows: The eligibility for appointment of a Stipendiary Ombudsman will be same as that of an Ombudsman vide clause (12) of this regulation. clause 19(1)(j). The Board of NPS Trust does exercise oversight function in respect of CGMS by reviewing the position at its quarterly meetings. 4. The role of NPS Trust has been defined by the PFRDA Act-2013 and the Trust exercises oversight and supervisory role and not an operational role, as has been envisaged under this clause. A detailed paper on the Role, responsibilities & Functions of NPS Trust in light of the provisions of PFRDA Act- 2013 & Indian Trust Act has already been sent vide our letter F no. 1/14/2013-NPST of 9 th June 2014 and in line with the recommendations of this paper, operational role for NPS Trust is not recommended. This provision, as above, is against the principles of fair play and good corporate governance. By making a distinction and exception in the case of PSU whole time directors, their counter parts are being placed at an disadvantage and it can also create an perception that this provision does cast a shadow on them vis-à-vis their public sector counterparts. The qualification for the appointment of an Ombudsman and a Stipendiary Ombudsman can be same. In case of Stipendiary Ombudsman, if a specific assignment of specialized nature is to be entrusted than the clause (12) has enough broad provision to ensure that a person with appropriate qualification is appointed. 6