Monday, February 25, 2019

Minimum assured return under NPS? PFRDA working on it.

Pension fund regulator PFRDA is working on a minimum assured return scheme (MARS) for subscribers of the flagship social security programme -- National Pension System. 

NPS is a contributory retirement savings scheme and seeks to inculcate the habit of saving for old age among the citizens. 

NPS, having an asset under management (AUM) of Rs 2.91 lakh crore, had subscriber base of 1.21 at the end of January. 

The regulator is in the process of designing and developing MARS , according to a document of the Pension Fund Regulatory and Development Authority (PFRDA). 

Some aspects, including what kind of guarantee -- absolute return guarantees or relative rate of return guarantees (sector and benchmark-based) -- can be reasonably provided by the pension funds with recommendation of suitable proposals, need to be examined, said the expression of interest (EOI) floated by it. 

EOI has been invited from actuarial firms to design, develop and recommend MARS under the National Pension System that can be implemented under NPS architecture. 



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