NPS to Offer Assured Payouts? PFRDA Forms Expert Panel for Retirement Security

• PFRDA has formed a high-level expert committee to develop a regulatory framework for assured payouts under the National Pension System (NPS).
• The move aims to strengthen retirement income security and improve certainty in post-retirement income while retaining NPS's market-linked character.
• The committee, chaired by M S Sahoo, comprises 15 members from diverse backgrounds including legal, actuarial, finance, and capital markets.
• Its mandate includes designing regulations for assured payout products, ensuring smooth transition from accumulation to payout phase, and assessing market-based models.
• The panel will also review operational aspects like lock-in periods, withdrawal limits, pricing, fee structures, capital adequacy, tax treatment, and disclosure norms.

Why It Matters: PFRDA is working to introduce assured payouts in NPS, enhancing retirement security for subscribers.