Pension Fund Regulatory and Development Authority (PFRDA) has constituted a high-level expert committee to develop a regulatory framework for assured payouts under the National Pension System (NPS), in line with the provisions of the PFRDA Act. The initiative aims to strengthen retirement income security for NPS subscribers.

The move is aligned with the government’s broader vision of Viksit Bharat 2047, which focuses on ensuring financial independence and dignity for citizens in their post-retirement years.

The 15-member committee will be chaired by M. S. Sahoo, founder of Dr. Sahoo Regulatory Chambers and former Chairperson of the Insolvency and Bankruptcy Board of India (IBBI). The panel comprises experts from legal, actuarial, finance, insurance, capital markets and academic backgrounds, and may invite external specialists or intermediaries for consultations as required.

The committee has been constituted as a standing advisory body on structured pension payouts. Its key objectives include framing regulations for assured payout options, ensuring a seamless transition of subscribers from the accumulation phase to the decumulation stage, and examining market-based and legally enforceable assurance mechanisms.

It will also work on defining operational aspects such as lock-in periods, withdrawal limits, pricing and fee structures, along with risk management, solvency norms and tax implications for payout products that allow subscribers to remain within the NPS architecture. In addition, the panel will focus on consumer protection through standardised disclosures to prevent mis-selling and manage subscriber expectations regarding assured and market-linked guarantees.