PFRDA Forms 15-Member Panel To Examine Assured Payout Options Under NPS

New Delhi, Jan 14 (KNN) The Pension Fund Regulatory and Development Authority (PFRDA) has set up a 15-member high-level committee to examine the feasibility of introducing assured payout options under the National Pension System (NPS), within the existing regulatory framework.

Committee Composition and Mandate

The panel will be chaired by M. S. Sahoo, former Chairperson, Insolvency and Bankruptcy Board of India (IBBI), and includes experts from actuarial science, finance, insurance, capital markets, law and academia. It may also consult external experts and intermediaries.

According to PFRDA, the committee will develop a regulatory framework for assured payouts under current pension schemes, based on the regulator’s consultation paper issued on September 30, 2025. A key focus will be ensuring a smooth transition from the contribution phase to the payout phase after retirement.

Operational and Risk Aspects

The committee will examine operational issues such as lock-in periods, withdrawal limits, pricing and fee structures, as well as risk management requirements including capital and solvency norms. It will also assess tax implications and propose disclosure standards to safeguard subscribers and reduce the risk of mis-selling.

Regulator’s Perspective

PFRDA said the initiative aims to strengthen retirement income security while retaining the market-linked nature of NPS. The move is part of the regulator’s broader effort to improve long-term financial security for retirees.

Earlier in the day, PFRDA Chairman S. Ramann launched Pensionbazaar, a digital platform to improve access to pension products, underscoring the need for wider participation in retirement planning.

(KNN Bureau)