Pension Fund Regulatory and Development Authority (PFRDA) constitutes high-level committee to enable assured payouts under National Pension System.

Key facts

• The Pension Fund Regulatory and Development Authority (PFRDA) has constituted a high-level committee to formulate guidelines and regulations for establishing a framework for assured payouts under the National Pension System (NPS).
• The committee will be chaired by Dr. M. S. Sahoo, Founder of Dr. Sahoo Regulatory Chambers and former Chairperson of the Insolvency and Bankruptcy Board of India (IBBI).
• The 15-member panel comprises experts from law, actuarial science, finance, insurance, capital markets, and academia.
• The committee has been established as a standing advisory committee on structured pension payouts.
• Its core objectives include formulating regulations for assured payout products, designing an end-to-end framework for transition from accumulation to payout phase, and enabling legally enforceable, market-based guarantees for assured payouts.
• The committee will define operational parameters such as lock-in periods, withdrawal limits, pricing methodologies, and fee and cost structures for service providers.
• It will establish capital and solvency requirements for providers and examine tax implications for payout options within the NPS architecture.
• The committee will develop standardized disclosure norms to prevent mis-selling and align subscriber expectations with market-based guarantees.