PFRDA Announces Expert Committee to Develop Framework for Assured Payouts under National Pension System (NPS)

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....FRDA Announces Expert Committee to Develop Framework for Assured Payouts under National Pension System (NPS)<BR>News and Press Release<BR>Dated:- 13-1-2026<BR><BR>The Pension Fund Regulatory and Development Authority (PFRDA) has constituted a high-level committee tasked with formulating guidelines and regulations to enable a framework for assured payouts under the National Pension System (NPS). Th....

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....is move aligns with the provisions of the PFRDA Act and aims to enhance the security of retirement income for subscribers. The formation of this committee is a significant step by PFRDA towards the broader vision of a Viksit Bharat 2047, where every citizen achieves true financial independence and dignity in their golden years. Committee Leadership and Composition The committee will be chaired ....

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....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 includes a diverse group of experts from various disciplines such as legal, actuarial, finance, insurance, capital markets and academia. Furthermore, to ensure comprehensive deliberation, the committee has been authorized to invite external....

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.... experts or intermediaries as special invitees for feedback and consultation. Key Objectives and Terms of Reference The committee is established as a standing advisory committee on structured pension payouts. Its primary mandate,&nbsp;inter alia,&nbsp;includes: * Framework Development: Creating regulations for assured payouts, including exploring the pension schemes as highlighted in the PFRDA....

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.... consultation paper dated September 30, 2025. * Seamless Transition: Ensuring a smooth end-to-end transition for subscribers moving from the accumulation phase to the decumulation (payout) phase. * Market-Based Assurance: Deliberating on novation and settlement concepts to ensure legally enforceable and market-based guarantees. * Operational Design: Defining terms such as lock-in periods, wi....

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....thdrawal limits, pricing mechanisms and fee structures for providers. * Risk & Legal Oversight: Establishing robust risk management (capital and solvency requirements) and examining tax implications for payouts that do not require a subscriber to exit the NPS architecture. * Consumer Protection: Developing standardized disclosure frameworks to prevent mis-selling and manage subscriber expectat....

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....ions regarding the nature of assurance and market based guarantee.<BR> News - Press release - PIB....