PFRDA Proposes New Valuation Framework for Pension Fund Clarity

The PFRDA has introduced a consultation paper proposing a new valuation framework for pension investments in India, aiming to present pension wealth accumulations transparently and ensuring economic stability. Stakeholders are invited to provide feedback on the proposal to enhance governance and protect subscriber interests.

The Pension Fund Regulatory and Development Authority (PFRDA) has unveiled a consultation paper aimed at enhancing transparency in pension wealth accumulations for subscribers while safeguarding long-term financial stability. The paper provides innovative solutions to align valuation guidelines with the performance of long-term funds.

Titled 'Alignment of Valuation Guidelines with the core objectives of Long-only Funds when investing in Government Securities and calculation of Net Asset Value (NAV)', the document elaborates PFRDA's strategic efforts to bolster governance and optimize pension fund investments. The proposed framework suggests adopting a dual valuation approach for government securities, ensuring alignment with long-term infrastructure growth.

Emphasizing the importance of reducing short-term interest rate volatility impact on pension schemes, the PFRDA is actively seeking feedback from stakeholders. Comments from NPS participants, prospective subscribers, pension funds, experts, and the public are welcomed until November 30, 2025, marking its commitment to inclusive policy development.

(With inputs from agencies.)