The central government's plans to push reforms have seen a setback as the decision regarding the important Pension Fund Regulatory and Development Authority Bill, 2011 was delayed mainly due to differences with political allies.

Among all of political allies of the UPA, the Trinamool Congress has been most vocal against reforms of pension and insurance in the country. The union cabinet was expected to approve the changes to the PFRDA Bill following recommendations from the Standing Committee on Finance in order to let the bill pass during the Monsoon session of Parliament next month.

The cabinet had to decide upon the proposal that ensures returns to pension fund subscribers, as per the recommendations of the committee. The Committee was headed by BJP leader Yashwant Sinha.

The changes to the PFRDA Bill will open up the sector to private sector and foreign investments.

The bill will also establish a statutory authority to undertake promotional, developmental and regulatory functions in respect to pension funds. The matters are now being looked after by an interim body since 2003 through an executive order.

The proposed changes have been pending in government circles for several years and the legislation was introduced in the Lok Sabha on March 24, 2011.