New pension scheme | PFRDA to launch Minimum Return Guaranteed pension scheme
- Minimum return on pension fund investment will be guaranteed
- PFRDA is preparing to launch this scheme
- There will be a new opportunity for those seeking minimum assured returns
Minimum Return Guaranteed pension scheme: Good news has come out for those investing in pension scheme and those planning to invest. The minimum return on pension investment will be guaranteed, ie cannot be less than the fixed return.
Pension Fund Regulator and Development Authority (PFRDA) President Supratim Bandopadhyay said the authority is preparing to launch a pension scheme that guarantees minimum returns. He said that the Pension Authority is in talks with pension funds and actuarial firms in this regard. Based on this interaction, the proposed plan will be outlined.
He said that under the PFRDA Act, we are allowed to start a minimum assured return scheme. Under pension fund (PF) schemes, managed funds are market based. So there are obviously some ups and downs and valuations are based on market movements.
Bandopadhyay said that therefore there may be some people who would like minimum assured returns. Therefore, we are working with our pension fund managers and some actuarial firms to determine the ideal level of minimum guarantee that can be given.
Despite this, he said, the guarantee would be linked to the market as the fund managers would have to decide the guaranteed portion of the return on investment. When asked if PFRDA will offer this scheme in the current financial year, he said that we will try. This is a product that we are preparing ourselves.