PFRDA Hosts Key Stakeholder Seminar to Refine NPS with Flexible, Assured Options

In a major step toward reshaping India's pension landscape, the Pension Fund Regulatory and Development Authority (PFRDA) convened a high-impact seminar on the newly released Consultation Paper titled "Enhancing the National Pension System: Proposals for Flexible, Assured and Predictable Pension Schemes." Held at the Insurance Institute of India, Mumbai, the seminar brought together a distinguished panel of experts, industry leaders, and policymakers to deliberate on proposed reforms to the National Pension System (NPS), specifically in the decumulation phase.

The event attracted a wide cross-section of attendees, including academicians, pension fund managers, annuity and life insurance providers, and other retirement sector stakeholders, reflecting the increasing urgency and importance of designing pension products that offer both flexibility and financial security to India's growing base of NPS subscribers.

Three Proposed NPS Schemes: Toward Personalised Retirement Solutions

At the heart of the discussions was PFRDA's consultation paper, which outlines three innovative scheme models under the NPS framework designed to meet varied retirement needs through assured, flexible, and predictable options.

🔹 Pension Scheme-1: Non-Assured, Flexible Decumulation

• Offers a step-up Systematic Withdrawal Plan (SWP) combined with an annuity, focusing on wealth maximization and flexible payouts.

• Appeals to investors seeking greater control over retirement income, with risk-adjusted returns and optional annuitisation.

🔹 Pension Scheme-2: Assured Benefit with Inflation Indexation

• Aims to provide a Target Pension with inflation-adjusted payouts, linked to the Consumer Price Index for Industrial Workers (CPI-IW).

• Ideal for those seeking income stability and purchasing power protection throughout retirement.

🔹 Pension Scheme-3: Assured Pension via "Pension Credits"

• Introduces an innovative, goal-based framework where each "Pension Credit" corresponds to a fixed monthly payout.

• Designed to offer predictable benefits and enhance subscriber engagement through transparent planning and tracking.

Expert Presentations and Dialogue on Decumulation Strategies

The seminar featured detailed presentations from three prominent experts:

• Prof. Arun Muralidhar, Adjunct Faculty at Georgetown University

• Dr. Renuka Sane, public policy scholar and retirement economics expert

• Mr. Ravi Saraogi, CFA, financial markets professional and retirement planning specialist

Their insights spurred intense deliberations on key issues such as:

• Designing cost-effective annuity structures

• Bridging the gap between accumulation and decumulation

• Integrating inflation protection in pension products

• Aligning regulatory flexibility with subscriber behaviour and financial literacy

Participants also raised important points on operational aspects, scalability, and how to foster subscriber trust and engagement in the proposed schemes.

Each session concluded with lively Q&A discussions, drawing practical suggestions for real-world implementation and effective stakeholder communication.

Aligning Pension Reform with India's Retirement Goals

PFRDA's proposals arrive at a crucial time when India's retirement sector is witnessing rapid evolution, driven by:

• A growing number of informal and self-employed workers entering voluntary pension plans

• Rising life expectancy and the need for lifetime income streams

• Increased demand for customized, risk-mitigated retirement solutions

These schemes are designed not only to diversify the NPS decumulation choices but also to make retirement income more resilient, equitable, and aligned with life goals.

Feedback Invited from Stakeholders and the Public

The Consultation Paper has been made available on the PFRDA official website, and the authority has extended an open call for feedback.

PFRDA encourages NPS subscribers, fund managers, insurers, researchers, policy experts, and the general public to submit suggestions via the Feedback Template provided in the document. This inclusive approach is expected to refine the schemes based on diverse real-world inputs.

Toward a More Secure Retirement Future

As India transitions into a pensioned society, this move by PFRDA is part of a broader strategy to ensure flexibility, assurance, and sustainability in the post-retirement phase of life. With approximately 1.5 crore NPS subscribers and growing, the ability to offer choice and certainty will become a cornerstone of India's evolving social security architecture.

The Mumbai seminar serves as the first of many consultative efforts to align technical innovation with public interest, positioning the NPS as a world-class pension model for the 21st century.