The Public Sector Undertaking (PFRDA) has constituted an expert committee to formulate a framework for guaranteed pension payments in the National Pension System (NPS), which aims to provide subscribers with a secure, stable and reliable income after retirement.
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A major change is underway in the NPS rules. The Pension Fund Regulatory and Development Authority (PFRDA) has formed a special committee to manage pension payments under the NPS. This committee will develop rules and guidelines that will ensure subscribers receive a safe, stable, and reliable pension after retirement. Its primary goal is to strengthen the financial security of the elderly.
Yes, the PFRDA has created a special committee to establish a guaranteed pension system under the NPS. According to the PFRDA, this step is aligned with the vision of a developed India 2047, where every citizen can enjoy financial independence and a dignified life in old age.
How many people will be on the committee?
This 15-member committee will be led by Dr. M.S. Sahu. He is the founder of Dr. Sahu Regulatory Chambers and previously served as Chairman of the IBBI. The committee includes experts from the fields of law, finance, insurance, actuarial science, capital markets, and education. However, the committee may also seek advice from outside experts if needed.
The main objectives of the committee
This Committee will function as a standing advisory committee on structured pension payouts, with the following key functions:
1. Developing a framework: Rules will be formulated for guaranteed pension payments through the NPS. This will also consider the various pension options outlined in the PFRDA consultation paper issued on September 30, 2025.
2-Smooth Transition: NPS will be designed in a simple and clear format to help subscribers move smoothly from the investment accumulation stage to the pension payment stage without any hassle.
3-Market-based guarantees: Market-based and legal guarantees will be implemented to ensure safe pension payments, providing reliable security to subscribers through mechanisms such as novation and settlement.
4-Operational Design: Clear and simple rules will be made for the lock-in period in NPS, how much withdrawal can be made, how the pension will be decided and what will be the fees for the workers.
5- Risk and legal monitoring: To reduce risk, rules related to capital and solvency will be set and it will also be seen how tax will affect pension payments.
6-Consumer Protection: Standard rules will be formulated for consumer safety to prevent mis-selling and to ensure that subscribers understand the terms and conditions of the pension in advance.
NPS is a safe option
Overall, this initiative is a big step towards strengthening NPS as well as ensuring a stable and reliable income after retirement.
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