PRESS COVERAGE PFRDA First Pension Conclave held on 26 th August 2014, IHC, New Delhi Arun Jaitley launches new website of PFRDA, bats for pension reforms Aug 26, 2014 Union Finance Minister Arun Jaitley while launching a new user friendly and informative website of PFRDA at First Pension Conclave held here today said that the pension reforms will help in releasing resources for better deployment and utilisation in other social sectors. Jaitley said considering that pension payouts, particularly unfunded and uncertain are to be borne by the public exchequer, the pension reforms will mitigate this burden releasing resources for better deployment and utilisation in other social sectors. He highlighted the need to build up corpus of funded resources to eventually act as the source for pension pay outs in future, and also as a source for financing critical sectors as infrastructure and also capital market. Arun Jaitley said that to build a consensus on issues such as pension across the political spectrum is not easy. He said that the Pension Fund Regulatory and Development Authority (PFRDA) legislation has however gone through a process of guided development and adequate sensitisation. He highlighted the important aspects and implications of pension reforms, a key area of financial sector and economic reforms in the country. He said that an amendment to the Insurance Act to enhance the limit of FDI to 49 percent will also mean similar provision for the pension sector. The increase in the FDI limit to 49 percent, will permit inflow of foreign capital, investment expertise and new technology. The Finance Minister also on this occasion released the First Annual Report of PFRDA for 2013-14 post notification of the PFRDA Act. Releasing the Report, the Finance Minister hoped that the Regulatory Authority would provide a conducive and enabling environment for expansion in pension industry with larger number of players. Highlighting the importance of NPS Swavalamban scheme for the unorganised sector people, the Union Finance Minister said that this segment requires special support and he urged PFRDA to promote this scheme vigorously across the country. Expressing confidence about the role of PFRDA in promoting Swavalamban Scheme, he expressed that the scheme signifies an element of self-pride through participation of the less fortunate and excluded segments. The Finance Minister expressed confidence that the regulatory authority will formulate regulations for sound and sustainable growth of the pension system with due regard to the interest of the subscribers including setting-up an efficient and responsive grievance redressal mechanism, He exhorted the industry to come up with more and more new products which could compete with each other with benefit accruing to the pension subscribers. (ANI) 1
Arun Jaitley expects insurance Bill to be cleared by year-end The Bill proposes a composite foreign limit of 49%, including both FDI and portfolio flows, as against the existing FDI limit of 26% The insurance (amendment) Bill was tabled in the Rajya Sabha in the recently concluded budget session but was referred to a select committee after demand from opposition parties. Photo: Pradeep Gaur/Mint New Delhi: Finance minister Arun Jaitley on Tuesday said the government is hopeful that the insurance Bill will be passed this year itself. The insurance (amendment) Bill was tabled in the Rajya Sabha in the recently concluded budget session but was referred to a select committee after demand from opposition parties. The Bill proposes a composite foreign limit of 49%, including both foreign direct investment (FDI) and portfolio flows, as against the existing FDI limit of 26%. Speaking at the launch of the annual report of the Pension Fund Regulatory and Development Authority (PFRDA), Jaitley said a higher foreign investment limit in insurance will benefit the pension sector as well because of a clause in the PFRDA Act that stipulates that an increase in foreign investment in insurance sector will also apply to the pension sector. The finance minister said a higher insurance limit in pension will ensure more capital and expertise coming into the sector. 2
Insurance Bill may be passed by year-end: Jaitley The bill is touted as a major economic reform but has been pending for long due to political interests August 26, 2014 After the Insurance Bill was referred to a select committee of Parliament on demand from the Opposition, Finance Minister Arun Jaitley today hoped that the Bill would be cleared by Winter Session. "Hopefully, by the end of the year the amendments to the Insurance Act get approved by Parliament and then notified," he said at a Pension Fund Regulatory and Development Authority (PFRDA) event. The Bill, touted as a major economic reform but pending for long due to political interests, proposes to hike composite cap of foreign investment in the insurance sector to 49% from the current 26%, with a rider that control rests in the hands of Indian promoter. The select committee's stand on the issue of composite foreign investment cap would be crucial because other provisions of Jaitley's Bill were not different from the version proposed by the previous United Progressive Alliance (UPA) government. Ahead of Prime Minister Narendra Modi's visit to the US, the government wanted to take up the Bill for consideration and passage in Parliament earlier this month, but the opposition, led by UPA, refused to budge from its stand that the Bill be referred to a select committee. Jaitley said as and when the foreign investment limit in the insurance sector was increased it would also pave wave for a simultaneous hike in pension FDI. There is an intrinsic link between insurance and pension sector...the foreign direct investment limits in the Insurance Act automatically applies to the pension sector," he said. "Therefore additional investment coming in, more expertise coming in, more capital coming in, hopefully more funds coming in and different kinds of products competing against each other then becomes greater reality." The Bill has been pending since 2008 in the Rajya Sabha. As many as 97 amendments were moved to the original bill by the Narendra Modi-led government last month. Jaitley said reforms do come but they come little slowly as it had happened in the case of pension sector. He said considering that pension pay-outs, particularly unfunded and uncertain are to be borne by the public exchequer, pension reforms would mitigate this burden releasing resources for better deployment and utilisation in other social sectors. He highlighted the need to build up corpus of funded resources to eventually act as the source for pension pay outs in future, and also as a source for financing critical sectors as infrastructure and also capital market. "You have an element of social security and you also have channelising of all these investments into developmental activities of the society. Pension funds are one of the biggest investors globally and there is no reason why India should not strive to reach that optimum limit," Jaitley added as he launched the revamped website of the PFRDA and released the annual report of the pension fund regulator. The finance minister asked the industry to come up with more and more new products which could compete with each other with benefit accruing to the pension subscribers. 3
Insurance Bill: Finance Minister Arun Jaitley hopeful of Parliament nod by yearend 26 Aug 2014 New Delhi: Finance Minister Arun Jaitley today expressed hope that the long-pending Insurance Bill seeking to hike FDI cap to 49 per cent will be passed by the Parliament by the end of this year. "Hopefully by the end of the year the amendments to the Insurance Act get approved by Parliament and then notified," he said at an event organised by Pension Fund Regulatory and Development Authority (PFRDA). "There is an intrinsic link between insurance and pension sector...the foreign direct investment limits in the Insurance Act automatically applies to the pension sector," he said. "Therefore additional investment coming in, more expertise coming in, more capital coming in, hopefully more funds coming in and different kinds of products competing against each other then becomes greater reality," he added. The much-delayed Insurance Bill seeks to raise the foreign investment cap in the sector from 26 per cent to 49 per cent, with a rider that the management control rests in the hands of Indian promoter. The Bill to hike the FDI limit has been pending since 2008 in the Rajya Sabha. As many as 97 amendments have been moved to the original bill by the Narendra Modi-led government last month. The Bill could not be passed in the Budget session because of the stiff resistance from the various opposition parties. It was eventually referred to a Select Committee of Parliament. The government agreed to the opposition demand amidst receding hopes of being able to convince it to support its first major economic reform initiative on the last day of the Budget session. 4
Insurance, pension sector reforms interlinked: Arun Jaitley August 26, 2014 India s Finance Minister Arun Jaitley Tuesday expressed hope that the insurance bill would be passed by the end of this year, allowing 49 percent foreign equity in insurance and pension sectors. Releasing the annual report of the Pension Fund Regulatory and Development Authority (PFRDA) here, Jaitley said the insurance amendment bill is linked with the pension sector. As per the PFRDA Act, foreign equity in a pension fund cannot exceed 26 percent or such percentage as may be approved for an Indian insurance company under the provisions of the Insurance Act, which ever is higher. The insurance bill has been referred to a select committee of the Rajya Sabha. According to Jaitley, the increase in foreign equity limit would bring in more funds into the country and enable launch of new products. He said that in a democracy, decision-making is a complex issue and hence reforms would happen but at a slow pace. 5
Insurance, Pension Sector Reforms Interlinked: Jaitley 26th August 2014 NEW DELHI: India's Finance Minister Arun Jaitley Tuesday expressed hope that the insurance bill would be passed by the end of this year, allowing 49 percent foreign equity in insurance and pension sectors. Releasing the annual report of the Pension Fund Regulatory and Development Authority (PFRDA) here, Jaitley said the insurance amendment bill is linked with the pension sector. As per the PFRDA Act, foreign equity in a pension fund cannot exceed 26 percent or such percentage as may be approved for an Indian insurance company under the provisions of the Insurance Act, which ever is higher. The insurance bill has been referred to a select committee of the Rajya Sabha. According to Jaitley, the increase in foreign equity limit would bring in more funds into the country and enable launch of new products. He said that in a democracy, decision-making is a complex issue and hence reforms would happen but at a slow pace. 6
Amendments to Insurance Act hoped by year end: Finance Minister Arun Jaitley By PTI 26 Aug, 2014 NEW DELHI: Finance Minister Arun Jaitley today expressed hope that long-pending Insurance Bill seeking to hike FDI cap to 49 per cent will be passed by Parliament by the end of this year. "Hopefully by the end of the year the amendments to the Insurance Act get approved by Parliament and then notified," he said at an event organised by Pension Fund Regulatory and Development Authority (PFRDA) here. "There is an intrinsic link between insurance and pension sector...the foreign direct investment limits in the Insurance Act automatically applies to the pension sector," he said. "Therefore additional investment coming in, more expertise coming in, more capital coming in, hopefully more funds coming in and different kinds of products competing against each other then becomes greater reality," he added. The much-delayed Insurance Bill seeks to raise the foreign investment cap in the sector from 26 per cent to 49 per cent, with a rider that the management control rests in the hands of Indian promoter. The Bill to hike the FDI limit has been pending since 2008 in the Rajya Sabha. As many as 97 amendments have been moved to the original bill by the Narendra Modi-led government last month. The Bill could not be passed in the Budget session because of the stiff resistance from the various opposition parties. It was eventually referred to a Select Committee of Parliament. The government agreed to the opposition demand amidst receding hopes of being able to convince it to support its first major economic reform initiative on the last day of the Budget session. Meanwhile, the Finance Minister launched the revamped website of the PFRDA and released the annual report of the pension fund regulator. On the occasion, Jaitley elucidated the journey of PFRDA from inception in 2003-04 through an executive order to becoming a statutory body with notification of the Act earlier this year. The central government had introduced the New Pension System (NPS), now known as National Pension System with effect from 1 January 2004. Initially, the New Pension System covered new entrants to central government services (excluding Armed Forces) and some state government services. From May 1, 2009, PFRDA has extended NPS to all citizens of India, including workers of the unorganised sector. Highlighting that pension was always a key area of reform in India, he said: "You have an element of social security and you also have channelising of all these investments into developmental activities of the society." Pension funds are one of the biggest investors globally and there is no reason why India should not strive to reach that optimum limit, he added. 7
Jaitley Hopeful of Parliament Nod on Long-Pending Insurance Bill by Year-End NEW DELHI AUG 26, 2014 Finance Minister Arun Jaitley today expressed hope that long-pending Insurance Bill seeking to hike FDI cap to 49 per cent will be passed by Parliament by the end of this year. "Hopefully by the end of the year the amendments to the Insurance Act get approved by Parliament and then notified," he said at an event organised by Pension Fund Regulatory and Development Authority (PFRDA) here. "There is an intrinsic link between insurance and pension sector...the foreign direct investment limits in the Insurance Act automatically applies to the pension sector," he said. "Therefore additional investment coming in, more expertise coming in, more capital coming in, hopefully more funds coming in and different kinds of products competing against each other then becomes greater reality," he added. The much-delayed Insurance Bill seeks to raise the foreign investment cap in the sector from 26 per cent to 49 per cent, with a rider that the management control rests in the hands of Indian promoter. The Bill to hike the FDI limit has been pending since 2008 in the Rajya Sabha. As many as 97 amendments have been moved to the original bill by the Narendra Modi-led government last month. The Bill could not be passed in the Budget session because of the stiff resistance from the various opposition parties. It was eventually referred to a Select Committee of Parliament. The government agreed to the opposition demand amidst receding hopes of being able to convince it to support its first major economic reform initiative on the last day of the Budget session. Meanwhile, the Finance Minister launched the revamped website of the PFRDA and released the annual report of the pension fund regulator. On the occasion, Jaitley elucidated the journey of PFRDA from inception in 2003-04 through an executive order to becoming a statutory body with notification of the Act earlier this year. The central government had introduced the New Pension System (NPS), now known as National Pension System with effect from 1 January 2004. Initially, the New Pension System covered new entrants to central government services (excluding Armed Forces) and some state government services. From May 1, 2009, PFRDA has extended NPS to all citizens of India, including workers of the unorganised sector. Highlighting that pension was always a key area of reform in India, he said: "You have an element of social security and you also have channelising of all these investments into developmental activities of the society." Pension funds are one of the biggest investors globally and there is no reason why India should not strive to reach that. 8
Defence FDI in place, next goal insurance New Delhi, Aug. 26 The government, which today notified a foreign investment limit of 49 per cent in defence industries, expects the insurance amendment bill to be cleared in the winter session of Parliament. FDI proposals in defence above 49 per cent will require the permission of the cabinet committee on security. Finance minister Arun Jaitley today said the government hoped that the insurance bill would be passed this year itself. The insurance (amendment) bill was tabled in the Rajya Sabha in the recently concluded budget session but was referred to a select committee after protests by the Congress and other Opposition parties. Jaitley, who was attending a function to launch the annual report of the Pension Fund Regulatory and Development Authority (PFRDA), said pension reforms were tied to insurance amendments. The PFRDA bill stipulates that the percentage of foreign investment in the pension sector will be similar to the insurance sector. The insurance amendment bill, which proposes an overall foreign investment limit of 49 per cent both FDI and FII included against the existing cap of 26 per cent, is nearly the same as the one proposed earlier by the Congress but opposed by the BJP. In a retaliatory move, the Congress has now sought to oppose the bill, citing differences from its own draft. Officials said once the report from the select committee had been received, the government might be willing to accept small changes to get it passed by the Upper House. Otherwise, the government will wait for the Upper House to defeat the bill before calling a joint session to clear it. Joint sessions have been rare in Indian parliamentary history. However, the Narendra Modi-government had indicated that it might consider the option as a way of passing legislations since the Congress and regional parties not aligned to the BJP formed the majority in the Rajya Sabha. 9
Jaitley hopes to deliver on pension reforms by year-end New Delhi, Aug 26: Finance Minister Arun Jaitley addressing the Pension Conclave organised by the Pension Fund Regulatory and Development Authority in New Delhi on Tuesday. -- S. Subramanium Finance Minister Arun Jaitley on Tuesday expressed hope that the insurance laws amendment Bill will get passed in Parliament and notified by the end of this year. This would pave the way for specifying a foreign investment limit (currently pegged at 49 per cent in the Bill) in the pension sector, Jaitley said at a PFRDA event in the Capital. He pointed out that the insurance laws Bill was intrinsically linked to the pension sector. Any revision in the foreign investment limit in the insurance sector would automatically apply to the pension sector. This would bring more foreign funds into India and enable a greater number of products to be made available to customers in India. Jaitley said pensions were always a key area of reform in India. Decision-making in a democracy was an intricate issue. Decision-making was far more difficult and reforms do come, but they come too slowly. Pension reforms is part of this, he said, adding that reforms have been slow but sure in this space in the country. On the occasion, Jaitley launched the Web site of the Pension Fund Regulatory and Development Authority (PFRDA). He also released the first annual 10
Jaitley sees bill to allow 49% FDI in insurance getting nod by year end NEW DELHI India s finance minister Arun Jaitley expressed hope on Tuesday that parliament would give its approval to the amendments to the Insurance Act, permitting 49 per cent foreign investment, by end December. Prime Minister Narendra Modi s plans to push through insurance reforms were blocked last month by the opposition in parliament and the government had to agree to send the bill for consideration by a parliamentary panel. Hopefully, by the end of the year the amendments to the Insurance Act get approved by Parliament and then notified, he said at a Pension Fund Regulatory and Development Authority (PFRDA) event. The select committee s stand on the issue of composite foreign investment cap would be crucial because other provisions of Jaitley s Bill were not different from the version proposed by the previous UPA government. Ahead of Prime Minister Narendra Modi s visit to the US, the government wanted to take up the Bill for consideration and passage in Parliament earlier this month, but the opposition, led by UPA, refused to budge from its stand that the Bill be referred to a select committee. Jaitley said as and when the foreign investment limit in the insurance sector was increased it would also pave wave for a simultaneous hike in pension FDI. There is an intrinsic link between insurance and pension sector...the foreign direct investment limits in the Insurance Act automatically applies to the pension sector, he said. Therefore additional investment coming in, more expertise coming in, more capital coming in, hopefully more funds coming in and different kinds of products competing against each other then becomes greater reality. The Bill has been pending since 2008 in the Rajya Sabha. As many as 97 amendments were moved to the original bill by the Narendra Modi-led government last month. Jaitley said reforms do come but they come little slowly as it had happened in the case of pension sector. He said considering that pension pay-outs, particularly unfunded and uncertain are to be borne by the public exchequer, pension reforms would mitigate this burden releasing resources for better deployment and utilisation in other social sectors. He highlighted the need to build up corpus of funded resources to eventually act as the source for pension pay outs in future, and also as a source for financing critical sectors as infrastructure and also capital market. 11
Insurance, pension sector reforms interlinked: Jaitley 26th August, 2014 India's Finance Minister Arun Jaitley Tuesday expressed hope that the insurance bill would be passed by the end of this year, allowing 49 percent foreign equity in insurance and pension sectors. Releasing the annual report of the Pension Fund Regulatory and Development Authority (PFRDA) here, Jaitley said the insurance amendment bill is linked with the pension sector. As per the PFRDA Act, foreign equity in a pension fund cannot exceed 26 percent or such percentage as may be approved for an Indian insurance company under the provisions of the Insurance Act, whichever is higher. The insurance bill has been referred to a select committee of the Rajya Sabha. According to Jaitley, the increase in foreign equity limit would bring in more funds into the country and enable launch of new products. He said that in a democracy, decision-making is a complex issue and hence reforms would happen but at a slow pace. 12
13
14
15
16
17
18
19
FM LAUNCHES NEW WEBSITE OF PFRDA AND RELEASES ITS FIRST ANNUAL REPORT; SAYS THE PENSION REFORMS WILL HELP IN RELEASING RESOURCES FOR BETTER DEPLOYMENT AND UTILISATION IN OTHER SOCIAL SECTORS Press Trust of India New Delhi, August 26, 2014 The Union Finance Minister Shri Arun Jaitley said that to build a consensus on issues such as pension across the political spectrum is not easy. He said that the Pension Fund Regulatory and Development Authority (PFRDA) legislation has however gone through a process of guided development and adequate sensitisation. He highlighted the important aspects and implications of pension reforms, a key area of financial sector and economic reforms in the country. He said that an amendment to the Insurance Act to enhance the limit of FDI to 49% will also mean similar provision for the pension sector. The increase in the FDI limit to 49%, will permit inflow of foreign capital, investment expertise and new technology. The Finance Minister Shri Jaitley was speaking after launching a new user friendly and informative website of PFRDA at First Pension Conclave held here today. The Finance Minister also on this occasion released the First Annual Report of PFRDA for 2013-14 post notification of the PFRDA Act. Releasing the Report, the Finance Minister hoped that the Regulatory Authority would provide a conducive and enabling environment for expansion in pension industry with larger number of players. The Union Finance Minister Shri Arun Jaitley said that considering that pension pay-outs, particularly unfunded and uncertain are to be borne by the Public exchequer, the pension reforms will mitigate this burden releasing resources for better deployment and utilisation in other social sectors. He highlighted the need to build up corpus of funded resources to eventually act as the source for pension pay outs in future, and also as a source for financing critical sectors as infrastructure and also capital market. Highlighting the importance of NPS Swavalamban scheme for the unorganised sector people, the Union Finance Minister Shri Arun Jaitley said that this segment requires special support and he urged PFRDA to promote this scheme vigorously across the country. Expressing confidence about the role of PFRDA in promoting Swavalamban Scheme, he expressed that the scheme signifies an element of selfpride through participation of the less fortunate and excluded segments. The Finance Minister expressed confidence that the regulatory authority will formulate regulations for sound and sustainable growth of the pension system with due regard to the interest of the subscribers including setting-up an efficient and responsive grievance redressal mechanism, He exhorted the industry to come up with more and more new products which could compete with each other with benefit accruing to the pension subscribers. 20