PFRDA sets up standing advisory committee to assist in assured payout under NPS

According to a statement by PFRDA, the committee has been tasked with formulating guidelines and regulations to enable a framework for assured payouts under the NPS.

In order to prescribe assured pay out under the National Pension System (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) on Tuesday announced setting up a high-level committee. It will be headed by M S Sahoo, former Chairperson of the Insolvency and Bankruptcy Board of India (IBBI).

According to a statement by PFRDA, the committee has been tasked with formulating guidelines and regulations to enable a framework for assured payouts under the NPS. “This move aligns with the provisions of the PFRDA Act and aims to enhance the security of retirement income for subscribers,” it said while adding that the formation of this committee is a significant step by PFRDA towards the broader vision of a Viksit Bharat 2047, where every citizen achieves true financial independence and dignity in their golden years.

The statement added that the committee will work as a standing advisory committee on structured pension payouts. Its primary mandate will include creating regulations for assured payouts, including exploring the pension schemes. It will ensure a smooth end-to-end transition for subscribers moving from the accumulation phase to the decumulation (payout) phase. It will deliberate on innovation and settlement concepts to ensure legally enforceable and market-based guarantees.

The committee will define terms such as lock-in periods, withdrawal limits, pricing mechanisms and fee structures for providers. It will establish robust risk management (capital and solvency requirements) and examining tax implications for payouts that do not require a subscriber to exit the NPS architecture. It has also been tasked to develop standardized disclosure frameworks to prevent mis-selling and manage subscriber expectations regarding the nature of assurance and market based guarantee.

Published on January 13, 2026