According to a statement from PFRDA, the committee is charged with formulating guidelines and regulations to enable a framework for guaranteed disbursements under the NPS.
According to a statement from PFRDA, the committee is charged with formulating guidelines and regulations to enable a framework for guaranteed disbursements under the NPS. “This step is in line with the provisions of the PFRDA Act and aims to enhance the security of retirement income for subscribers,” the report said, while adding that the formation of this committee is an important 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 main mandate includes creating regulations for guaranteed payouts, including exploring pension schemes. It ensures a smooth end-to-end transition for subscribers moving from the accumulation phase to the decumulation (payout) phase. Innovation and settlement concepts will be deliberated to ensure legally enforceable and market-based guarantees.
The committee will define terms such as lock-in periods, withdrawal limits, pricing mechanisms and provider reimbursement structures. It will establish robust risk management (capital and solvency requirements) and explore the tax implications for payouts where a subscriber is not required to leave the NPS architecture. It has also been tasked with developing standardized disclosure frameworks to prevent mis-selling and manage subscriber expectations regarding the nature of collateral and market-based guarantees.
Published on January 13, 2026
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