PFRDA Explores Guaranteed Payout for NPS Subscribers: What You Need to Know

• PFRDA is considering an assured payout option for NPS to enhance its attractiveness as a retirement scheme.
• NPS is currently a market-linked scheme; the new option would provide regular monthly payments post-retirement, similar to APY or EPF.
• A 15-member high-level committee, chaired by Dr. M. S. Sahoo, has been formed to develop the framework for this assured payout.
• The committee's objectives include drafting rules, ensuring smooth transition, examining market mechanisms for guarantees, and setting operational designs.
• Key focus areas also include risk oversight, consumer protection through disclosure norms, and reviewing tax treatment.

Why It Matters: PFRDA is developing a guaranteed payout model for NPS to offer financial security and attract more subscribers.