Good news for pensioners! ‘Guaranteed return’ will be available under NPS, know the plan of the government

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Good news for pensioners! 'Guaranteed return' will be available under NPS, know the plan of the government
Good news for pensioners! 'Guaranteed return' will be available under NPS, know the plan of the government

NPS Assured Return Scheme: There is good news for pensioners. PFRDA has started this for the first time with the appointment of consultants to realize the Minimum Assured Return Scheme. Let’s know the details.


NPS Assured Return Scheme: There is good news for lakhs of pensioners of the country. Actually, the pension regulator PFRDA is going to come up with the Minimum Assured Return Scheme (MARS) under the National Pension System (NPS). Let us know about this special scheme of the government.

PFRDA to appoint consultant

The Pension Fund Regulatory and Development Authority (PFRDA) has issued a Request for Proposal (RFP) to the consultants to design this scheme. Earlier, PFRDA President Supratim Das Bandyopadhyay had said that ‘talks are going on with pension funds and actuarial firms in this regard’.

A minimum assured return scheme is allowed under the PFRDA Act. The funds being managed under pension fund schemes are marked-to-market and have some ups and downs. Their valuation is based on the market condition.

What will the consultant do?

As per the RFP draft of PFRDA, the appointment of a consultant should not create a principal-agent relationship between the PFRDA and the service provider for formulating a scheme with guaranteed returns under NPS. As per the instructions of the PFRDA Act, under NPS, the subscriber opting for a scheme which gives ‘minimum assured return’, such scheme will have to be offered by a pension fund registered with the regulator. In this way the advisors work by the Pension Fund to prepare a ‘Minimum Assured Return’ scheme for the existing and potential subscribers.

Know what is NPS

The Central Government had compulsorily implemented NPS on 1 January 2004 for its employees. After this all the states adopted NPS for their employees. After the year 2009, this scheme was also opened to those working in the private sector. After retirement, employees can withdraw a part of NPS, while the rest can take annuity for regular income. Any person between 18 to 60 years can take the National Pension Scheme.