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Boost Retirement Security: New NPS Payout Rules
13 Jan
Summary
- New committee to draft assured payout regulations for NPS.
- M S Sahoo chairs the 15-member expert panel.
- Goal is to strengthen retirement income security in India.
The Pension Fund Regulatory and Development Authority (PFRDA) has established a 15-member expert committee to develop regulations for assured payouts under the National Pension System (NPS). Chaired by former IBBI chairperson M S Sahoo, this committee's mandate is to draft guidelines that provide greater certainty in post-retirement income while maintaining NPS's market-linked nature. The panel will also address operational details and subscriber safeguards.
The committee will function as an advisory body, focusing on designing products for assured payouts, including those previously discussed in a consultation paper from September 2025. It will assess mechanisms for a smooth transition from the accumulation to the payout phase and explore market-based models for legally enforceable assurances.
Further considerations include lock-in periods, withdrawal limits, pricing, fee structures, capital adequacy, solvency requirements, and tax implications. The PFRDA emphasizes that this effort aligns with strengthening India's overall pension ecosystem and ensuring long-term financial security for retirees.
