Pension System: The Pension Fund Regulatory and Development Authority (PFRDA) has set up a high-level expert committee to create a reliable and stable income plan for retirees under the National Pension System (NPS). This committee’s job is to come up with rules and guidelines that fit within the current NPS framework, ensuring that pensioners get a pension that is both market-based and legally guaranteed.
This initiative by PFRDA is seen as a key step in enhancing the retirement security of pensioners and is also tied to the government’s larger vision of Developed India 2047, which aims to provide economic self-reliance and a dignified life for every citizen in their later years.
So, what’s changing?
This 15-member committee will be led by Dr. M. S. Sahoo, who is the former Chairman of the Insolvency and Bankruptcy Board of India (IBBI) and now the founder of Dr. Sahoo Regulatory Chambers. The committee is made up of experts in law, actuarial science, finance, insurance, capital markets, and academia. The PFRDA has also given the committee the green light to bring in outside experts and arbitral institutions as special invitees if needed. This committee will act as a permanent advisory group on Structured Pension Payouts.
Its main goal is to create a regulatory framework for guaranteed pension payments in the NPS, which will support the pension plans suggested in the PFRDA consultation paper released on September 30, 2025. Additionally, the committee will make sure that the process for subscribers, from investing in the NPS to withdrawing funds, is straightforward, clear, and smooth.
Here’s how you’ll gain from this
Moreover, the committee is looking into ways to legally put market-based guarantees into action. They will discuss ideas like novation and settlement to make sure pension payments are dependable. On top of that, they’ll clearly define operational details such as lock-in periods, withdrawal limits, pricing models, and service fees. Risk management will play a crucial role for the committee too. This means figuring out capital and solvency needs, as well as checking out tax effects so that pensioners can get guaranteed pensions without leaving the NPS.
Plus, they’ll create a standardized disclosure framework to safeguard customer interests, stop mis-selling, and clarify the differences between assurance and market-based guarantees in pensions. All in all, this move by the PFRDA shows that real steps are being taken to change the NPS from just a market-based retirement option into a more secure and trustworthy pension system. The recommendations from the expert committee could really influence the future of India’s pension system.
