PFRDA Forms High-Level Committee to Frame Assured Payout Framework Under NPS
In a significant step aimed at strengthening retirement security for millions of Indians, the Pension Fund Regulatory and Development Authority (PFRDA) has constituted a high-level committee to develop guidelines and regulations for assured payouts under the National Pension System (NPS). The initiative is designed to provide greater certainty and stability of income for subscribers during their post-retirement years.
Veteran Regulator M. S. Sahoo to Chair Panel
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). Known for his regulatory expertise, Sahoo is expected to guide the panel in shaping a robust and legally sound payout framework.
The 15-member committee comprises experts from diverse fields, including law, actuarial science, finance, insurance, capital markets, and academia. To ensure comprehensive deliberations, the panel has also been authorised to invite external experts, intermediaries, and stakeholders as special invitees.
Focus on Assured Payouts and Smooth Transition
According to the Finance Ministry, the committee has been established as a standing advisory body on structured pension payouts. Its core mandate includes formulating regulations for assured payout options under the NPS and ensuring a smooth end-to-end transition for subscribers moving from the accumulation phase to the decumulation, or payout, phase.
A critical area of work will involve deliberations on novation and settlement mechanisms to ensure that payout guarantees are legally enforceable and market-based. The panel will also work on managing subscriber expectations by clearly defining the nature and scope of assurances.
Operational Standards and Risk Oversight
The committee has also been tasked with designing key operational standards, including lock-in periods, fee structures, withdrawal limits, and payout mechanisms. Alongside this, it will ensure rigorous risk management and legal oversight, particularly with respect to capital adequacy and solvency requirements.
Strong Emphasis on Consumer Protection
Consumer protection will form a central pillar of the new framework. The proposed regulations will mandate standardised disclosures to prevent mis-selling and ensure transparency in how retirement payouts are communicated to subscribers.
The move reflects the government’s broader effort to strengthen India’s pension ecosystem and improve long-term financial security for retirees amid rising longevity and evolving retirement needs.
(This article has been syndicated from ANI)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
