PFRDA constitutes panel to develop framework for assured payouts under NPS

New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has constituted a 15-member high-level committee tasked with formulating guidelines and regulations to enable a framework for assured payouts under the National Pension System (NPS).

This move aligns with the provisions of the PFRDA Act and aims to enhance the security of retirement income for subscribers, the pension fund regulator said in a statement.

The formation of this committee, under the former Insolvency and Bankruptcy Board of India chairman M S Sahoo, 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, it said.

The 15-member panel includes a diverse group of experts from disciplines such as law, actuarial science, finance, insurance, capital markets, and academia. Furthermore, to ensure comprehensive deliberation, the committee has been authorized to invite external experts or intermediaries as special invitees for feedback and consultation.

Apart from framework development, terms of reference also include ensuring a smooth end-to-end transition for subscribers moving from the accumulation phase to the decumulation (payout) phase and deliberating on novation and settlement concepts to ensure legally enforceable and market-based guarantees.

Besides, the panel would also look into defining terms such as lock-in periods, withdrawal limits, pricing mechanisms and fee structures for providers and 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.

On the consumer protection side, the panel would develop standardized disclosure frameworks to prevent mis-selling and manage subscriber expectations regarding the nature of assurance and market-based guarantees.

Meanwhile, PFRDA organized awareness-building sessions of NPS among Micro, Small, and Medium Enterprises (MSMEs) at the 2nd Vibrant Gujarat Regional Conference (VGRC) held in Rajkot.

The event, held on January 11-12, 2026, was inaugurated by Prime Minister Narendra Modi. The VGRC event was part of the popular Vibrant Gujarat Global Summit (VGGS) series, which was initiated in 2003.

Addressing MSME stakeholders, PFRDA Executive Director Mamta Rohit emphasized the urgency of retirement planning in the MSME sector, which employs approximately 29 crore individuals across the country.

Recent reforms include increased equity exposure limits, enhanced withdrawal flexibility (including removal of lock-in periods), extension of maximum account holding age to 85 years, and the launch of NPS Vatsalya for early pension planning, she said.

In another event, PFRDA Chairman S Ramann launched Pensionbazaar, a platform designed to enable end-to-end retirement planning for Indian investors.

Pensionbazaar’s mission is to help individuals secure their financial, health, and social well-being in retirement through a more structured and accessible approach to planning.

Its vision is anchored in addressing a persistent gap in India's financial landscape, where retirement planning is often delayed or underestimated.

As India's population aged 60 and above is projected to nearly double by 2050, Pensionbazaar seeks to play a meaningful role in strengthening long-term retirement planning.

Speaking at the event, the PFRDA chairman said it is essential that every citizen has access to pension products, as long-term financial security cannot be left to chance.

"We want individuals to remain invested in the NPS system for 20, 30, or even 40 years. We are delighted to be associated with the launch of Pensionbazaar, which can play an important role in advancing this objective," he said.