NEW DELHI, Oct 1 : The Pension Fund Regulatory and Development Authority (PFRDA) has released a comprehensive consultation paper titled ‘Enhancing the National Pension System: Proposals for Flexible, Assured and Predictable Pension Schemes’, an official statement said today.
It will serve as a key initiative to advance the National Pension Scheme (NPS) by introducing enhanced options designed to provide greater certainty and predictability in post-retirement income for subscribers.
The consultation paper proposes three distinct schemes under the NPS framework, each catering to different subscriber needs for assured and flexible pension payouts:-
Pension Scheme-1 (Non-Assured, Flexible Decumulation) focuses on maximizing pension wealth through a mix of a Step-up Systematic Withdrawal Plan (SWP) and an Annuity.
Pension Scheme-2 (Assured Benefit) is designed to provide a Target Pension with periodic inflation adjustments based on the Consumer Price Index for Industrial Workers (CPI-IW).
Moreover, Pension Scheme-3 (Assured through Pension Credits) introduces the innovative concept of “Pension Credits,” where each credit assures a fixed monthly pension payout.
It enhances predictability and subscriber engagement through a goal-based framework.
PFRDA is seeking feedback from all stakeholders, including NPS participants, prospective subscribers, pension funds, industry experts, academia, and the general public.
The Authority encourages thorough review and constructive input on the proposals to ensure the successful development and implementation of these schemes.
Stakeholders are requested to submit their comments, inputs, and feedback using the Feedback Template provided within the consultation paper by October 31, the statement added.
(UNI)
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