Guidelines for Appointment of Trustees under National Pension System Trust Regulations, 2015

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PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY PFRDA/2015/18/LGL/2 Date: 18.06.2015 GUIDELINES FOR APPOINTMENT OF TRUSTEES UNDER NATIONAL PENSION SYSTEM TRUST REGULATIONS, 2015 1. These guidelines are issued by the Authority in exercise of powers under Regulation 32 of the PFRDA (National Pension System Trust) Regulations 2015. 2. The guidelines are issued to clarify Regulation 5, 7, and 10, pertaining to appointment and tenure of trustees and shall be in force and effect, until superseded by any other guidelines issued by the Authority. 3. The guidelines shall not be applicable in the case of trustees, who have been appointed and are on the Board of the National Pension System Trust, prior to the notification of the Pension Fund Regulatory & Development Authority (National Pension System Trust) Regulations 2015, and the date of issuance of these guidelines. 4. Each trustee, appointed to the National Pension Trust shall possess a minimum of a graduate degree in any of the specialisations viz. should be experts in the field comprising law or finance or economics or accountancy or social welfare or administration with proven management skill, experience, capacity, integrity and reputation and having an experience of not less than twenty years in the relevant field of specialisation. Further the maximum age limit for continuing as a trustee of the National Pension System Trust shall be 70 years of age, irrespective of the tenure of appointment. 5. Out of the maximum of eleven trustees to be appointed, by the Authority the following shall be the composition: SL.NO PARTICULARS TENURE 1. Two Trustees to be nominated by the Central government as under: (i)One trustee each to be nominated by Department of Financial Services (DFS) and Department of Personnel and Training, (DOPT) from candidates fulfilling the criteria provided under Regulation 5, and having a minimum of twenty years’ experience. These trustees may be appointed only for an initial period of three years and should be rotated between various departments of Central government. 2. Two Trustees to be nominated by State governments as under: (i)One trustee to be nominated by State government with maximum Assets Under Management under NPS fulfilling the criteria provided under Regulation 5, and having a minimum of twenty years’ experience . (ii) One trustee to be nominated by State government with maximum number of subscribers under NPS and fulfilling the criteria provided under Regulation 5, These trustees may be appointed only for an initial period of three years and thereafter should be rotated between various State Governments so that each State government is represented over a period of time. and having a minimum of twenty years’ experience . (iii) In case the same State qualifies on the basis of maximum AUM and maximum number of subscribers, then State with highest AUM and State with 2nd highest numbers of subscribers shall nominate the respective trustee(s), as the case may be, fulfilling the criteria provided under Regulation 5, and having a minimum of twenty years’ experience . 3. A maximum of seven trustees to be appointed by PFRDA, representing the interest of all class of subscribers including all citizen and corporate sector, NPS Lite etc. and fulfilling the eligibility conditions prescribed in regulations, particularly Regulation 5. i.e. persons with sufficient education and experience in economics, finance, law, accountancy, social welfare or administration with proven management skills, capacity, integrity and reputation. These trustees shall have to possess a They may be appointed initially for a term of three years extendable for a further period of two years. minimum of a graduate degree in any of the aforesaid specialisations and have an experience of not less than twenty years in such relevant field of specialisation. 6. The appointment of trustees, as and when undertaken, shall be made in a transparent manner and the notice for seeking applications for suitably qualified persons alongwith advertisement be hosted on the website of PFRDA and that of National Pension System Trust, prior to appointments being effected. 7. The list of candidates for the position of trustees, nominated by Central Government/State Government and the list so compiled by the concerned department of PFRDA shall be scrutinised by a Search and Selection Committee consisting of Chairperson and any two members of the Authority, to be nominated by the Chairperson. The Search and Selection Committee shall shortlist the candidates besides any other candidates deemed to be suitable for discharging the duties of the Trustees as identified by the said Committee. Thereafter the consent to act as trustees, will be sought by the concerned department of PFRDA, from such candidates, who have been recommended by the Search and Selection Committee as being found suitable. Upon conveyance of such acceptance, the approval of the Board of PFRDA shall be sought before effecting formal appointment. In exigencies, the appointment of the trustee shall be made and the ratification from the PFRDA Board shall be sought subsequently. Venkateshwarlu Peri (General Manager)