New Delhi: The first of the six pension funds to be set up in the country is to be launched on October 2, well in time to operationalise the new pension scheme for government employees joining after October.

The modalities for the pension funds will be decided by the interim pension regulatory authority, which would soon go before the Cabinet for approval.

"The Cabinet note is ready for setting up the interim pension regulatory authority and it will go before the Cabinet soon," official sources told reporters.

There is a strong possibility that Finance Secretary S Narayan, who is retiring in June end, is likely to head it, the sources said. His place is likely to be taken over by Expenditure Secretary D C Gupta.

Government has decided to set up six pension funds of which one would be in the government sector and rest in the private sector for which insurance companies, mutual funds including UTI (Unit Trust of India) and financial institutions with experience in fund management would be eligible.

Just as in the case of SEBI (Securities and Exchange Board of India) and IRDA (Insurance Regulatory Development Act), an interim regulator would be set up and subsequently a permanent pension authority would be established after the passage of Pension Regulatory Authority Bill in Parliament, which is likely in the monsoon or winter session.

PTI