PFRDA sets up panel to look at induction of more asset classes for better returns

The Pension Fund Regulatory and Development Authority (PFRDA) has formed a panel to explore the long‑term inclusion of various asset classes aimed at boosting returns for pensioners.

“We need to identify assets that can deliver consistent, steady growth over an extended period without excessive swings…A scenario where we see a huge spike one year followed by a sharp decline is undesirable. Such volatility must be avoided,” said PFRDA Chairman S Ramann in an interview with PTI.

It is worth noting that the number of subscribers enrolled in the National Pension System (NPS) is projected to increase by more than 22 percent this year.

At the close of FY26, the NPS had 2.17 crore subscribers, with a total corpus amounting to Rs 15.95 lakh crore.

“A committee has been established to examine the long‑term induction of different asset classes. We are drawing lessons from the experiences of pension funds operating worldwide,” he added.

“I am confident we will devise a smooth glide path that ensures NPS holders receive returns that are stable and progressively improving,” he said.

When questioned about PFRDA’s proposal for a Minimum Assured Pension plan, Ramann confirmed it remains under active consideration.

“We are certainly evaluating the idea of a Unified Pension Scheme for the private sector. A guaranteed structure is easier to comprehend,” he remarked, emphasizing the necessity of balancing risk and return.

“Someone must stand behind the assurance of returns—similar to the Atal Pension Yojana (APY), where the government provides the guarantee and absorbs the associated cost,” he explained.

Last year, the pension regulator PFRDA released a consultation paper outlining proposals for flexible, assured, and predictable pension schemes. The document suggested three distinct schemes within the NPS framework, each tailored to meet different subscriber requirements for assured and flexible pension payouts.

Discussing the emphasis on NPS for the non‑government sector, Ramann said PFRDA is working to raise awareness among various societal segments about securing their future.

“Accordingly, we have created sub‑segments targeting agriculture‑based communities, farmers, small MSMEs operating in numerous clusters nationwide, and SHG groups where many individuals are now pursuing individual enterprises.

“We must reach out to all these groups, which together represent roughly 20‑25 crore people. It is our public responsibility to convey the right message encouraging them to save for retirement,” he concluded.

Published on May 21, 2026