The committee has been tasked with drafting guidelines and regulations in line with the provisions of the PFRDA Act, with a focus on creating structured and reliable pension payout options. The move is aimed at improving certainty in post-retirement income while retaining the market-linked character of the NPS.
The panel will be chaired by M S Sahoo, founder of Dr Sahoo Regulatory Chambers and former chairperson of the Insolvency and Bankruptcy Board of India (IBBI). It comprises 15 members drawn from legal, actuarial, finance, insurance, capital markets and academic backgrounds. The committee has also been authorised to seek inputs from external experts and intermediaries as part of its deliberations.
According to PFRDA, the committee will function as a standing advisory body on structured pension payouts. Its mandate includes designing regulations for assured payout products, including options discussed in the regulator’s consultation paper issued on September 30, 2025.
The panel will also examine mechanisms to ensure a smooth transition for subscribers from the accumulation phase to the payout phase, and assess market-based models that can provide legally enforceable assurances through novation and settlement structures.
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Other areas under review include operational aspects such as lock-in periods, withdrawal limits, pricing frameworks and fee structures for service providers. The committee will also look into capital adequacy and solvency requirements, tax treatment of assured payouts that remain within the NPS framework, and disclosure norms to safeguard subscribers against mis-selling.
PFRDA said the initiative is aligned with the broader objective of strengthening India’s pension ecosystem and supporting long-term financial security for retirees.
