PFRDA Eyes Assured 10-Year Payouts Under NPS; Expert Panel to Design New Products

• PFRDA is working to introduce new NPS products offering fixed monthly income for a defined period, like 10 years, instead of lifetime annuities.
• An expert committee will explore a Minimum Assured Return Scheme (MARS) to provide certainty of income, such as Rs 10,000 monthly for a limited duration.
• The initiative aims to give retirees more choices, allowing them to mix and match products based on age and needs, potentially opting for annuities later in life.
• PFRDA is also reviewing investment guidelines to allow wider asset diversification, including AIFs, to ensure robust returns amidst falling government bond yields.
• A digital distribution platform, Pension Bazaar, is being launched to expand pension coverage through low-cost, digital channels and long-term customer engagement.

Why It Matters: PFRDA is innovating NPS with assured short-term payouts and digital distribution to enhance retiree choices and returns.