PFRDA Forms Expert Panel for Assured Pension Payouts Under NPS
Overview
India's PFRDA has formed a 15-member expert committee to develop a regulatory framework for assured pension payouts within the National Pension System (NPS). This initiative aims to bolster retirement income security and financial independence for subscribers, aligning with the government's Viksit Bharat 2047 vision.
PFRDA Initiates Assured Payout Framework for NPS
The Pension Fund Regulatory and Development Authority (PFRDA) has established a high-level expert committee tasked with creating a regulatory framework for assured pension payouts under the National Pension System (NPS). Announced Tuesday via a Ministry of Finance statement, this move aims to enhance retirement income security and financial independence for subscribers.
Enhancing Retirement Security
The committee will formulate guidelines and regulations to enable structured, guaranteed pension payouts within the NPS architecture, in line with the PFRDA Act. This aligns with the government's 'Viksit Bharat 2047' vision, focusing on ensuring financial dignity in post-retirement years. The proposed framework is designed to offer greater post-retirement income certainty while retaining market-linked characteristics.
Committee Mandate and Scope
Chaired by Dr M S Sahoo, former chairperson of the Insolvency and Bankruptcy Board of India (IBBI), the 15-member panel comprises experts in law, actuarial science, finance, insurance, and capital markets. Its mandate includes framing regulations for assured payout products, examining pension schemes from a consultation paper dated September 30, 2025, and ensuring a smooth transition from the accumulation to the payout phase. Market-based assurance mechanisms, operational issues like lock-in periods and withdrawal limits, pricing, fee structures, and capital requirements for providers will also be deliberated.
Consumer Protection and Broader Participation
A key focus will be consumer protection, with standardized disclosure norms to prevent mis-selling and ensure clarity on guarantees. The panel will also examine tax implications for various payout options. Separately, PFRDA Chairman S Ramann indicated a review of NPS distribution norms to drive wider participation. He noted the current scale of 75 lakh NPS accounts is modest, emphasizing a need to change the perception of pensions as solely government products and ensure broad citizen access to long-term savings products.
