NPS Pensioners: Big update for pensioners, know the government’s plan for guaranteed returns

New Delhi. NPS Pensioners: Good news has come for lakhs of pensioners. Pension regulator PFRDA (Pension Fund Regulatory and Development Authority) is coming up with a minimum assured return scheme under the National Pension System (NPS). This will greatly benefit the pensioners.

Office of 8 Schemes That Will Make You Crorepati in Few Years The Pension Fund Regulatory and Development Authority (PFRDA) has invited suggestions from consultants requesting proposals for designing the scheme. Earlier, Chairman of Pension Regulatory Supratim Bandyopadhyay had said that discussions are being held with pension funds and actuarial firms in this regard. Minimum Assured Return Scheme is permitted under the PFRDA Act. The funds being managed under Pension Fund schemes are mark-to-market. It has some ups and downs. These are evaluated on the basis of market conditions.

Know what is National Pension Scheme (NPS)

The Central Government had compulsorily implemented the National Pension Scheme on 1 January 2004 for its employees. After this all the states have implemented NPS for their employees. This scheme has also been started for those working in the private sector after 2009. Employees can withdraw a part of NPS after retirement. Also, from the remaining amount, you can take an annuity for regular income. Any person in the age group of 18 to 70 years can avail NPS.

Know what advisors are saying As per the RFP draft of PFRDA, the appointment of a consultant for preparation of Guaranteed Return Scheme under NPS should not create a principal-agent relationship between PFRDA and the service provider. As per the directions of the PFRDA Act, a subscriber opting for a scheme under the National Pension Scheme which gives ‘Minimum Assured Returns’ will have to offer such a plan by a pension fund registered with the regulator. Thus the advisors will have to formulate a ‘Minimum Assured Return’ scheme for the existing and potential clients by the pension fund.