PFRDA: Good news about pension! ‘Guaranteed return’ will be available under NPS, know the plan of the government

Date:

Share:

There is good news for pensioners with the NPS Assured Return Scheme. For the first time, the PFRDA has begun this process by appointing consultants to implement the Minimum Assured Return Scheme. Let’s know the details.

There is good news for lakhs of pensioners in the country thanks to the NPS Assured Return Scheme. Actually, the pension regulator PFRDA is going to come up with the Minimum Assured Return Scheme (MARS) under the National Pension System (NPS). Let us know about this special scheme of the government.

PFRDA to appoint a consultant
The Pension Fund Regulatory and Development Authority (PFRDA) has issued a Request for Proposal (RFP) to the consultants to design the scheme. Earlier, PFRDA chairman Supratim Das Bandyopadhyay had said that “negotiations are on with pension funds and actuarial firms in this regard”.

Minimum Assured Return Scheme is allowed under the PFRDA Act. The funds being managed under pension fund schemes are mark-to-market and have some ups and downs. Their valuation is based on market conditions.

Read More: Changes in Banking Rules: Beginning May 26, PAN or Aadhaar information will be required for cash transactions over Rs 20 lakh.

What will the consultant do?
As per the draft RFP of PFRDA, the appointment of a consultant for formulating a scheme with guaranteed returns under NPS should not create a principal-agent relationship between PFRDA and the service provider. As per the directions of the PFRDA Act, under NPS, a subscriber opting for a scheme offering ‘minimum assured returns’ will have to offer such a scheme by a pension fund registered with the regulator. In this way, the advisors work through the pension fund to formulate a ‘minimum assured return’ plan for the existing and potential clients.

Know what is NPS
On January 1, 2004, the Central Government made NPS mandatory for its employees. Following that, all states implemented NPS for their employees. After 2009, this scheme was also made available to those working in the private sector. After retirement, employees can withdraw a part of the NPS, while the rest can be taken as an annuity for regular income. Any person between the age of 18 to 60 years can take the National Pension Scheme.

Subscribe to our magazine

More Like This

After April 1 RBI will not either deposit or change Rs 2000 notes

On May 19, 2023, the RBI announced that the Rs. 2000 notes would be discontinued. The Central Bank then gave the order to deposit...

Government changed PPF-Sukanya Samriddhi rules! New rules will apply from 1 April

PPF: This information is helpful to you if you too invest in government-run small savings plans. The government declared on Thursday that starting on...

Suzuki launched a new bike with a 776cc engine & cost Rs 10.30 lakh

The starting price of the Suzuki V-Strom 800DE bike in India is Rs 10.30 lakh (ex-showroom). In India, the V-Strom 650 will be replaced...

Skoda Superb coming back to India! maybe introduced on April 3

Following the implementation of the stringent BS6 Phase-II emission rules on April 1, 2023, Skoda India ceased production of its high-end sedan, the Superb....

You can easily update e-KYC in EPFO by following a simple, step-by-step procedure

The Employees Provident Fund Organisation serves millions of people nationwide with its accounts. You can benefit from this news if you also invest in...

LEAVE A REPLY

Please enter your comment!
Please enter your name here