Pension Reform in India

Pension reforms are an essential part of managing India’s calibrated globalization,
based on open‐society, open‐economy paradigm. This paper argues that there is a
strong case for reforming existing provident and pension fund organizations; and for
better design and delivery systems for old age assistance. Three major areas which
the reforms should address are enhancing professionalism in performing core
functions; a systemic perspective facilitating establishment of a multi‐tier social
security system; and better governance and regulation. The paper also stresses the
need to promote financial and pension literacy. Progress in the above areas would be
facilitated if the Parliament passes the Pension Fund Regulatory and Development
Authority (PFRDA) Bill expeditiously. India should also encourage pension research
and education with a view to developing innovative approaches in addressing old‐age
income security.