Pension Scheme : PFRDA to introduce a pension plan that guarantees a minimum return, this will be the benefit

New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) is preparing to introduce a pension scheme with a minimum return guarantee. PFRDA, President Supratim Bandopadhyay said, ‘the authority is preparing to introduce a pension scheme with minimum return guarantee’.

Bandopadhyay added, ‘the pension authority is in talks with pension funds and actuarial firms in this regard. Based on this interaction, the proposed plan will be framed’.

Bandopadhyay said, ‘there may be some people who would like a minimum guaranteed return. We are therefore working with our pension fund managers and some actuarial firms to determine the ideal level of minimum guarantee’.

Further he said, ‘despite this, the guarantee would be linked to the market as the fund managers would have to decide the guaranteed share of the return on investment.

On whether this scheme will be applied this year, Bandopadhyay said, ‘NPS and APY are products that have been developed in consultation with the Ministry of Finance. However, the PFRDA added several features to the National Pension System (NPS).