Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013
Administrative Powers, Meetings, Vacancies, Officers and Employees (Sections 8 to 11)
Sections 8 to 11 of the PFRDA Act deal with how the Authority works internally: who runs its administration, how it takes decisions, what happens if its membership is incomplete or a procedural error occurs, and how it recruits staff.
1. Administrative Powers of the Chairperson (Section 8)
Section 8, PFRDA Act, 2013 The Chairperson shall have the powers of general superintendence and direction in respect of all administrative matters of the Authority. |
- Administrative, not regulatory, supremacy: the Chairperson directs the Authority's administration: staff, offices, budgets and internal organisation.
- Regulatory decisions: decisions on regulations and major policy are taken by the Authority as a body at its meetings (Section 9), though many functions are delegated to members, officers or committees under Section 49.
2. Meetings of the Authority (Section 9)
- Procedure by regulations: the Authority meets at such times and places, and follows such rules of procedure, including quorum, as its regulations provide.
- Presiding member: the Chairperson presides; if he cannot attend, the members present choose one of themselves to preside.
- Majority: all questions are decided by a majority of the members present and voting.
- Casting vote: in case of a tie, the Chairperson, or in his absence the person presiding, has a second or casting vote.
Disclosure of interest
A member who is a director of a company and, as such, has a direct or indirect pecuniary interest in a matter before a meeting must disclose the nature of his interest at the meeting as soon as possible after becoming aware of it. The disclosure is recorded in the proceedings, and the member must not take part in any deliberation or decision on that matter. The rule applies the principle against bias, that no one should be a judge in his own cause.
3. Vacancies and Defects Not to Invalidate Proceedings (Section 10)
Section 10, PFRDA Act, 2013 No act or proceeding of the Authority shall be invalid merely by reason of (a) any vacancy in, or any defect in the constitution of, the Authority; or (b) any defect in the appointment of a person acting as a member of the Authority; or (c) any irregularity in the procedure of the Authority not affecting the merits of the case. |
- Purpose: to prevent regulatory action from being set aside on purely technical grounds, for example because a member's post was vacant or an appointment was later found defective.
- Limit: the protection covers only irregularities not affecting the merits. A breach of natural justice, a decision by a biased member, or a decision outside the Authority's powers is not cured by Section 10.
4. Officers and Employees (Section 11)
- Power to appoint (Section 11(1)): the Authority may appoint such officers and other employees as it considers necessary for the efficient discharge of its functions.
- Conditions of service (Section 11(2)): their terms and conditions are determined by regulations made by the Authority, which gives PFRDA control over its own staffing.
- Public servants: the Chairperson, members, officers and employees are deemed public servants within the meaning of the criminal law when acting under the Act (Section 47).
- Good faith: no suit or prosecution lies against the Government, the Authority, its members, officers or employees for anything done in good faith under the Act (Section 48).
⚠ Note The Authority may delegate its powers and functions to any member, officer or other person, and may constitute committees of members for specified functions (Section 49), but it cannot delegate its power to make regulations under Section 52. |
⚠ Key point The Chairperson has general superintendence and direction of the Authority's administrative matters (Section 8). The Authority meets under procedures, including quorum, set by regulations; the Chairperson presides; decisions are by majority of members present and voting, with a casting vote for the presiding member; and a member-director with a pecuniary interest must disclose it and abstain (Section 9). No act is invalid merely because of a vacancy, a defect in constitution or appointment, or a procedural irregularity not affecting the merits (Section 10). The Authority appoints its own officers and employees on terms set by regulations (Section 11), who are public servants (Section 47). |
5. Related Topics and Provisions
- Establishment and composition
- Chairperson and members