New Delhi: The government is ready with a legal amendment to allow the authority of the Fund Management & Development of Pension Fund (PFRDA) offering more flexibility to customers in terms of withdrawing funds at their retirement, in addition to bringing less regular pensions.
In the ambition.
Bill – which is being discussed by the Secretary Committee for several months – will also hide the trust of the national pension system from the regulator, ensuring that the FDI is aligned with one for the insurance sector, which is currently limited to 74%.
, The official source told Tii.
Furthermore, there are several smaller amendments, such as providing PFRDA force to recover punishment.
But the source says that the key element is to allow regulators to provide additional withdrawal options to make NPS more attractive.
At present, customers can attract 60% of the corpus at retirement when using the remaining amount to buy annuities.
Although the details have not succeeded, retirement regulators find customers to invest in a systematic withdrawal plan, which provides regular post-retirement income.
Another option is to have an annuity that is indexed by inflation, which will be offered, say, 10-year government securities.
The third option is to allow customers to invest part of the funds in the distended annuities so that they can get a better return.
However, the main changes will set as many retirement funds as possible from the Ambit Regulator.
After diamond law, funds must register and PFRDA will maintain supervision.
At the same time, Epfo, who also runs a retirement scheme, will not be arranged by PFRDA.
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