CABINET DEFERS DECISION ON PENSION REFORMS BILL
Amid differences among allies, the government on Thursday deferred a decision on the changes in the crucial Pension Fund Regulatory and Development Authority Bill, 2011.
“It (the PFRDA Bill) was taken up and deferred”, said a Minister after the Cabinet meeting in New Delhi.
Among the UPA allies, Trinamool Congress has been quite vociferous in opposing the pension and insurance reforms.
Railway Minister Mukul Roy, who represents TMC in the UPA government, did not speak on the issue during the Cabinet meeting, sources said.
The Cabinet, as per the agenda, was scheduled to approve changes in the PFRDA Bill in light of the recommendations of the Standing Committee on Finance, to pave way for passage of the bill in Monsoon session of Parliament next month.
The Cabinet, sources said, was required to take a view on the proposal of ensuring assured returns to pension fund subscribers, as suggested by the Committee, headed by senior BJP leader Yashwant Sinha.
The PFRDA Bill, which has been pending for several years, seeks to open the pension sector to private sector and foreign investment.
The proposed legislation was introduced in the Lok Sabha on March 24, 2011.
The PFRDA Bill provides for establishment of a statutory authority to undertake promotional, developmental and regulatory functions in respect to pension funds.
Interim PFRDA is functioning since 2003 through an executive order.
PFRDA, set up as a regulatory body for pension sector, is yet to get statutory powers as the Bill pertaining to that effect lapsed in Parliament with the expiry of last Lok Sabha in 2009.
EXPECTED DA FROM JULY 2012 MAY BE 7% AGAIN
Subject to AICIN data for the next two months remaining in the current level, the following assumption is being made.
The AICPIN data for April 12 has been recently published. It rises to 4 points and reached 205. We know that D.A. is calculated on the basis for 12 months average. To calculate the D.A. payable from 1st July 2012, we need the figures of May and June 2012 which are to be released on 30.06.12 and 31.07.12 respectively. If the data remains for the next two months in the same level, i.e. 205, the hike will be 7%. Even if it marginally drops 1 point in any of the months, the rise will be still 7% which will take the total D.A. to 72%.
Considering the latest hike in petrol price, it is unlikely that the index may drop in the next months. So we can guess the next D.A. hike @7%, revising our previous guess work.