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The Pension Fund Regulatory and Development Authority amends the appointment rules for auditors under the PFRDA (Appointment of Auditors) Guidance Note-2012. The Board of NPS Trust approves the appointment of auditors and their fee. Every pension fund engages an external auditor who has no association with the pension fund or its sponsor. The NPS Trust appoints the scheme auditor. The pension fund pays the audit fee after the NPS Trust approves the payment.
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Ask about this circular
[Image omitted. See the official document.]
Pension Fund Regulatory & Development Authority 1st Floor, ICADR Building, Plot No. 6, Vasant Kunj Institutional Area, Phase - II, New Delhi - 110070 Tel : 011-26897948/26897949 Fax : 011-26897938
CIRCULAR
PFRDA/2015/02/PFM/02
To,
All Pension Fund Managers,
CRA
Custodian
Trustee bank
NPS Trust
Auditors
Date: 05 Jan. 2015
Subject: Amendment to PFRDA (Appointment of Auditors) Guidance Note-2012
Part B - Clause 2 of the PFRDA (Appointment of Auditors) Guidance Note-2012 has been amended to -
Appointment of auditors and their fee will have to be approved by the Board of NPS Trust.
The recovery of the audit fee and the appointment of auditor would be applicable as per Clause 6 of 'PFRDA (Preparation of Financial Statements and Auditor's Report of Schemes under National Pension System) Guidelines-2012', which is reproduced hereunder for ready reference:
'Every PF shall have the financial statements of scheme audited by an external auditor who is not in any way associated with the audit of the PF or sponsor of the concerned PF or any other PF or schemes of any other PF. Scheme Auditor will be appointed by the NPS Trust and audit fee will be paid by the Pension Fund after obtaining approval for payment from NPS Trust'.
[Image omitted. See the official document.]
Sumeet Kaur Kapoor (General Manager)
