Pension Fund Authority Sets New Horizons with High-Level Advisory Committee

The Pension Fund Regulatory and Development Authority (PFRDA) has set up a 15-member committee to create guidelines for assured payouts under the National Pension System. Chaired by M S Sahoo, the committee includes diverse experts and aims to secure retirement income, aligning with 'Viksit Bharat 2047.'

The Pension Fund Regulatory and Development Authority (PFRDA) has established a 15-member committee to draft guidelines for assured payouts within the National Pension System. The initiative is designed to ensure secure retirement income for subscribers and aligns with the PFRDA Act, according to an official statement.

Chaired by former Insolvency and Bankruptcy Board of India chairman M S Sahoo, the committee symbolizes a step towards achieving the vision of 'Viksit Bharat 2047,' aiming for financial independence and dignity for all citizens in their senior years. The panel features experts from law, actuarial science, and finance, among other disciplines, and may invite external specialists for consultations.

Key tasks for the committee include facilitating smooth transitions for subscribers from the accumulation to payout phases and addressing concepts like novation and settlement for enforceable guarantees. The agenda also covers defining terms such as lock-in periods and withdrawal limits, robust risk management standards, and tax implications for non-exit payouts under the NPS.

Furthermore, consumer protection will be enhanced by introducing standardized disclosure frameworks to prevent mis-selling. The PFRDA is also working to raise awareness of the NPS among MSMEs through events like the Vibrant Gujarat Regional Conference, emphasizing retirement planning for the sector's extensive workforce.

PFRDA Chairman S Ramann recently launched Pensionbazaar, a platform that facilitates comprehensive retirement planning, addressing gaps in India's financial landscape while preparing for a projected doubling of the senior population by 2050.

(With inputs from agencies.)