NPS Trust

The National Pension System Trust (NPS Trust) was established by

PFRDA on 27th February, 2008 with the execution of the NPS Trust
Deed. The NPS Trust has been set up and constituted for taking
care of the assets and funds under the National Pension System
(NPS) in the interest of the beneficiaries (subscribers). Individual
NPS subscribers shall be the beneficiaries of the NPS Trust. The NPS
fund are managed by the Board of Trustees to realize and fulfill the
objectives of the NPS Trust in the exclusive interest of the Subscribers.

The Trust is managed by a Board of Trustees appointed by PFRDA

(settler of NPS Trust) from time to time. One of the Trustees from the
Board is designated by PFRDA as Chairperson of the Board. PFRDA
appoints a suitable person as Chief Executive Officer of the Trust
(CEO) who shall be responsible for day to day administration and
Management of the Trust subject to the superintendence, control and
direction of the Board of NPS Trust. The Board shall meet once every
three calendar months.

The current Board of Trustee of NPS Trust consists of Five Members

as under:-

1. Sh. G. N. Bajpai- Chairman

2. Sh. Nagendra Bhatnagar- Chief Executive Officer & Trustee

3. Sh. Syed Shahabuddin - Trustee

4. Sh. Shailesh V. Haribhakti- Trustee

5. Smt. Pallavi S. Shroff - Trustee

6. Sh Pramod Kumar Rastogi - Trustee

In fulfillment of its objectives, as broadly mentioned in the Deed, the

NPS Trust supervises the Pension Fund Managers (PFM’S) and
interacts with other intermediaries like Trustee Bank (Bank of India),
Central Record Agency (NSDL), Stock Holding Corporation of India
Ltd, etc. The Trust is empowered to enter into agreements with other
intermediaries and operating agencies to discharge its obligations.

As part of its obligations, the NPS Trust ensures that,

The PFM’s have been diligent in empanelling the brokers, in

monitoring securities transactions with brokers and avoiding undue
concentration of business with any broker.
 The PFM’s has not given any undue or unfair advantage to any
associates or dealt with any of the associates of the Pension Fund
in any manner detrimental to interest of the beneficiaries

The PFM’s has been managing the Fund Schemes

independently of other activities and has taken adequate steps to
ensure that the interests of the beneficiaries are not compromised.

All the activities and the transactions of the PFM’s are in

accordance with the provisions of the PFRDA guidelines/directions.

A memorandum of Understanding was signed between PFRDA

and the NPS Trust highlighting the rights and obligations of both the
parties on 1st July 2009.

To begin with the NPS was operational for the Central

Government Employees (except defense forces) joining the service on
after 1.1.2004. Subsequently the State Governments have also started
joining the NPS. Three Fund managers have been appointed to
manage the Funds of the Government employees from 1.1.2008.

· SBI Pension Funds Private Limited

· UTI Retirement Solutions Limited
· LIC Pension Fund Limited

The NPS was opened up for all citizens of India with effect from
1st May 2009. Presently the following five Pension Fund Managers
are managing the funds of unorganized sector.

· SBI Pension Funds Private Limited

· UTI Retirement Solutions Limited
· ICICI Prudential Pension Funds Management Company limited
· Kotak Mahindra Pension Fund Limited
· Reliance Capital Pension Fund Limited

Agreements with all the Pension Fund Managers have been

signed. Agreement has also been signed with the Stock Holding
Corporation of India who acts as custodian of investment Instruments.
So far Twenty Six State Governments /UT have joined the NPS by
signing the agreement with the NPS Trust. More State Governments
have shown their inclination to join the NPS Architecture.

A quarterly review of the Pension Fund managers is carried out

by the NPS Trust to review and evaluate the performance of the Fund
Managers and make suggestions for improvement.

As on 31st March 2013, NPS has 47,60,718 subscribers with an

AUM (Assets under Management) of 29,852 Crores.