The Lok Sabha has passed the Pension Fund Regulatory and Develpment Authority Bill, 2011. One hundred seventy four members voted in favour and 33 against the bill. Earlier replying to the debate, Finance Minister, P. Chidambaram said that the new Pension Scheme is mandatory for all Central Government employees who joined service on or after 1st January, 2004.

He said 26 states have already joined the scheme At present the scheme has over 52 lakh subscribers with cumulative fund of over 34 thousand crore rupees. He said the Bill seeks to give statutory authority to Pension Fund Regulatory and Development Authority which was set up 2003.

Mr. Chidambaram said nobody has made any complaint against this scheme. He assured the House that the new pension scheme will be the most secure and attractive for the subscribers.Mr. Chidambaram said that the Government has accepted all the recommendations of the Standing Committee on Finance except one which relates to facility of repayable advances from the pension accounts of the subscribers.

The Bill seeks to give statutory powers to the Pension Fund Regulatory and Development Authority, set up in 2003. It also changes the name of the New Pension Scheme to National Pension Scheme. Under the scheme, every subscriber will have an individual pension account,which will be portable across job changes. The subscribers will choose Fund Managers and schemes to manage their pension wealth. The subscribers will also have the option of switching schemes and Fund Managers.