PFRDA forms high-level committee for assured payouts under NPS

The PFRDA has established a high-level committee led by M. S. Sahoo to develop guidelines for assured payouts under the National Pension System (NPS), a move designed to bolster retirement income security for all subscribers.

In a move to improve retirement security, the Pension Fund Regulatory and Development Authority (PFRDA) has constituted a high-level committee tasked with formulating guidelines and regulations to enable a framework for assured payouts under the National Pension System (NPS). This move aims to enhance the security of retirement income for subscribers.

Committee Composition and Leadership

The committee will be chaired by M. S. Sahoo, Founder of Dr. Sahoo Regulatory Chambers and former Chairperson of the Insolvency and Bankruptcy Board of India (IBBI). The 15-member panel includes a diverse group of experts from various disciplines such as legal, actuarial, finance, insurance, capital markets and academia. Furthermore, to ensure comprehensive deliberation, the committee has been authorized to invite external experts or intermediaries as special invitees for feedback and consultation.

Mandate and Objectives

According to the Finance Ministry, the committee is established as a standing advisory committee on structured pension payouts. Its primary mandate includes creating regulations for assured payouts, ensuring a smooth end-to-end transition for subscribers moving from the accumulation phase to the decumulation (payout) phase, deliberating on novation and settlement concepts to ensure legally enforceable and market-based guarantees, and manage subscriber expectations regarding the nature of assurance and market based guarantee.

Key Directives and Subscriber Protection

Additionally, the ministry has directed the group to design critical operational standards--including lock-in periods, fee structures, and withdrawal limits--while maintaining rigorous risk and legal oversight regarding capital and solvency requirements. To protect citizens, the framework will mandate standardized disclosures to prevent mis-selling and ensure transparent management of subscriber expectations for their post-retirement years.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)