The Government of India had introduced the National Pension System (NPS) with effect from January 1, 2004, as a first step towards instituting pensionary reforms and consequently moved from a defined benefit pension to a defined contribution based pension system by making it mandatory for its new recruits (except armed forces) with effect from January 1, 2004. Majority of the States / UTs have also notified the National Pension System for their new employees. Of these, most of them have already signed agreements with the intermediaries of the NPS architecture appointed by PFRDA for carrying forward the implementation of the National Pension System. The other States are in the process of finalisation of documentation.
The NPS has since been made available, on voluntary basis, to all citizens of India (other than Central and State Government employees already covered) including workers of the unorganized sector with effect from May 1, 2009.
In 2009, the Pension Fund Regulatory and Development Authority (‘PFRDA’) had selected, through a competitive selection process, six pension funds/sponsors to manage the assets under the NPS of the citizens of India and Reliance Capital Pension Fund Limited (‘Reliance Pension Fund’) was one of the pension funds selected by the PFRDA for the purpose. Reliance Pension Fund was appointed as pension fund manager in accordance with the terms of the Investment Management Agreement executed with the NPS Trust.
In 2012, the PFRDA has issued a new set of registration guidelines i.e. PFRDA (Registration of Pension Funds for Private Sector) Guidelines, 2012, for the registration of Pension Funds to manage the pension corpus under NPS. In terms of these guidelines, PFRDA has granted registration to Reliance Pension Fund, vide registration code number PFRDA/002/2013/PFM dated January 23, 2013 to act as a pension fund, to manage the assets under the NPS for the private sector. The said registration is valid for a period of one year and will be renewed on a yearly basis.
Reliance Pension Fund was incorporated under the Companies Act, 1956 on 31st March, 2009 and was issued the Certificate of Commencement of Business by the Registrar of Companies on April 24, 2009 and by the PFRDA on April 30, 2009. RCPFL has an authorized share capital of Rs. 27 crores and paid up share capital of Rs. 25 crores.
Reliance Pension Fund endeavors to work along with the regulators, PFRDA and Trustees of NPS Trust, to offer the NPS subscribers sustainable retirement solutions and adequate retirement income.
Reliance Pension Fund is a subsidiary of Reliance Capital Asset Management Limited ("RCAM"). RCAM is an unlisted public limited company incorporated under the Companies Act, 1956 on February 24, 1995. RCAM has been appointed as the asset management company of Reliance Mutual Fund ("RMF") by the Trustees of RMF vide Investment Management Agreement ("IMA") executed between the Trustees of RMF and RCAM, in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this IMA, RCAM is authorised to act as the Investment Manager of RMF.
RMF is one of the fastest growing mutual funds in India. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 179 cities across the country. RMF constantly endeavors to launch innovative products and customer service initiatives to increase value to investors.
RCAM is a subsidiary of Reliance Capital Limited ("RCL"), which is one of India's leading and amongst most valuable financial services companies in the private sector. RCL a constituent of CNX Nifty Junior and MSCI India, is a part of the Reliance Group.
RCL has interests in asset management, mutual funds, portfolio management, pension funds, life and general insurance, private equity and proprietary investments, stock broking and depository services, investment banking, wealth management, home and commercial finance, financial products distribution, venture capital, exchanges, asset reconstruction and other activities in financial services.
The Reliance Pension Fund, RCAM, RMF and RCL are all part of the Reliance - Anil Dhirubhai Ambani Group.