NPS Assured Return Scheme: Pension regulator Pension Fund Regulatory and Development Authority (PFRDA) is all set to bring the Minimum Assured Return Scheme (MARS) under the National Pension System (NPS). This is excellent news for lakhs of pensioners of the country. (PFRDA) has issued a Request for Proposal (RFP) for consultants to design the scheme. Let us know about this in detail.
PFRDA will appoint consultants:
The Pension Fund Regulatory and Development Authority (PFRDA) has invited suggestions for consultants to design the scheme. At the same time, PFRDA President Supratim Das Bandyopadhyay said that talks are going on with pension funds and actuarial firms.
As per the PFRDA Act, A is allowed to start the scheme of Minimum Assured Return. The funds managed under pension fund schemes are mark-to-market and have some volatility. Their valuation is based on market conditions.
What will the consultant do?
As per the RFP draft of PFRDA, a consultant will be appointed to prepare the scheme with guaranteed returns under NPS. There should not be a principal-agent relationship between the PFRDA and the service provider.
Under the NPS, people opt for a scheme that gives a ‘minimum assured return’ as per the guidelines of the PFRDA Act. Such a scheme would have to be offered by a pension fund registered with the regulator. At the same time, the job of the advisors will be to prepare a ‘Minimum Assured Return’ scheme for the existing and potential clients of the pension fund.
Know what is NPS?
Let us tell you that the Central Government had implemented NPS for the employees from January 1, 2004. After this all other states implemented NPS. At the same time, after 2009, the private sector was also included in this scheme.
After retirement, employees can withdraw a portion of NPS, while the remaining amount can be taken as an annuity for regular income. Any person in the age group of 18 to 60 years can take the National Pension Scheme.