The Pension Fund Regulatory and Development Authority (PFRDA) has set up a high-level committee to establish rules for assured payouts within the National Pension System (NPS). This initiative, in line with the PFRDA Act, aims to bolster retirement income security for subscribers, as per a statement from the Finance Ministry.
Dr. M.S. Sahoo, Founder of Dr Sahoo Regulatory Chambers and former Chairperson of the Insolvency and Bankruptcy Board of India (IBBI), will lead the committee. Comprising 15 members with expertise in legal, actuarial, finance, insurance, capital markets, and academia, the panel can also invite external experts for feedback and consultation.
The committee, designated as a standing advisory body on structured pension payouts, will focus on crafting regulations for assured payouts. It will explore pension schemes outlined in a PFRDA consultation paper from September 30, 2025, and ensure a seamless transition for subscribers from accumulation to payout phases.
Expected tasks include discussing novation and settlement concepts for enforceable guarantees, defining terms like lock-in periods and withdrawal limits, and establishing risk management and tax implications. Additionally, the committee will work on a disclosure framework to prevent mis-selling and manage subscriber expectations regarding assurance and guarantees.
