New Delhi – The Pension Fund Regulatory and Development Authority (PFRDA) announced fresh rules designed to make India’s top pension plans, the National Pension System (NPS) and Atal Pension Yojna (APY), clearer and more stable for members.
The authority released a Consultation Paper titled “Alignment of Valuation Guidelines with the core objectives of Long‑only Funds when investing in Government Securities and calculation of Net Asset Value (NAV).” In it, the PFRDA proposes a dual valuation framework—using both accrual and fair‑market methods—for long‑dated government bonds held in the NPS and APY.
Why change the rules? The PFRDA says the new framework will:
* Show subscribers how their pension pot grows in a straightforward way during the accumulation phase.
* Reduce the effect of short‑term interest swings on the scheme’s NAV.
* Line up pension fund investments with long‑term capital formation, supporting big infrastructure projects and boosting confidence among all stakeholders.
The ministry highlighted that the new rules will help keep pension wealth stable, support broad economic growth, and make the investment strategy of these funds more transparent.
Stakeholders are invited to share comments on the paper by November 30. The PFRDA wants a broad range of feedback to fine‑tune the plans before implementation.
Earlier, the Finance Ministry noted that the combined assets under management (AUM) of the NPS and APY have surpassed ₹16 lakh crore. The number of subscribers to these flagship pension schemes has now crossed 9 crore, a key milestone in India’s pension journey.
Other PFRDA initiatives to boost pension inclusion include the new Multiple Scheme Framework (MSF), which launched on October 1 and offers more investment choices to participants.
Source: ianslive
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