• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

This refers to the news item `Pension scheme for unorganised sector by June' (Business Line, April 17).

First, even in the preliminary step of locating the regulator there are a variety of views — the OASIS report recommending a separate pension regulator; the Government asking the IRDA to hold the pension baby temporarily; the IRDA asking for a separate body under it or separately; the Government toying with the idea of allotting the pension sector to SEBI just because the current chief is an insurance man; and now a high powered body to examine the issues. It shows how difficult the decision-making process is and how powerful lobbies are operating.

Second, the proposal of setting up a pension scheme for the unorganised and informal sector is no doubt ambitious. If in the past we have seen the poor performance of the public sector UTI in managing the savings of the people, we are now on the verge of witnessing `pension casinos'.

Keeping in view our own past experience of public sector fund management and global instances of vanishing pension funds, there is need for caution.

Reform by all means, but ensuring a rigorous regulatory system is the first fundamental prerequisite and let there be no piecemeal solutions in this issue. After two reports — OASIS and IRDA — and now the current high-power committee — the chances of setting up a strong and comprehensive regulation appear dim.

S. Subramanyan

e-mail

Send this article to Friends by E-Mail

Stories in this Section
Sow seeds of diversification

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line