Pension fund talk really gets the blood flowing, doesn’t it? Well, we’re going to try our wonky best.
India’s Pension Fund Regulatory and Development Authority (PFRDA) is the government body responsible for regulating the country’s pension sector. In response to a proposal for new pension system that features defined contribution plans and professional financial funds, the PFRDA recently published a report on recommendations for this new plan. (The paper is no longer online, so special thanks to Amol Agrawal for sending it our way. We’ll post it if it comes back online.)
The paper’s discussion of the default rule is an interesting window into how thinking about default rules for investments has changed over the past decade, and how policymakers in different countries may end up addressing this issue.