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SpanishIndia. Market-linked assured returns pension plan runs into hurdles
The Pension Fund Regulatory and Development Authority’s (PFRDA) proposal to offer minimum assured returns on market-linked pension plans is facing resistance from other financial regulators and fund managers, said three people with direct knowledge of the matter, including a PFRDA official.
The matter was discussed in the Financial Stability and Development Council (FSDC) meeting held on 17 April.
As a way out, the pension regulator has suggested an inter-regulatory committee to work out the modalities.
In 2016, based on a provision in the PFRDA Act 2013, the pension fund regulator had floated a proposal to have a market-linked pension product with a minimum assured return.
The Act says users of national pension scheme (NPS) seeking minimum assured returns, shall have an option to invest in minimum assured returns schemes and these schemes will need to be notified by PFRDA.
Full Content: Live Mint
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