How is PFRDA Enhancing Transparency and Stability in NPS and APY Schemes?

Synopsis
Key Takeaways
- PFRDA's initiatives aim to enhance transparency.
- New dual valuation framework proposed for government securities.
- Stakeholders encouraged to provide feedback by November 30.
- Subscriber base for NPS and APY exceeds 9 crore.
- Assets under management surpass Rs 16 lakh crore.
New Delhi, Oct 21 (NationPress) The Pension Fund Regulatory and Development Authority (PFRDA) has put forth initiatives aimed at improving transparency and stability in the National Pension System (NPS) and the Atal Pension Yojna (APY) schemes, as announced by the Ministry of Finance on Tuesday.
The regulatory body has published 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)”, recommending a dual valuation framework (‘accrual’ and ‘fair market’) for long-dated government securities within the NPS and the APY, according to a ministry statement.
The PFRDA's suggestions are designed to achieve three principal objectives: to illustrate stable and simplified pension wealth accumulation for subscribers during their accumulation phase, to mitigate the effects of short-term interest rate fluctuations on scheme NAV, and to synchronize pension fund investments with long-term capital formation, thereby enhancing stakeholder confidence through financing productive, long-gestation infrastructure projects.
“Overall, the framework seeks to present pension wealth accumulations more transparently to subscribers while ensuring long-term financial stability and economic significance,” the statement remarked.
The authority invites comprehensive review and constructive feedback on the proposals to facilitate the effective development and execution of the schemes overseen by the PFRDA.
Stakeholders are urged to submit their comments, insights, and additional feedback on the aforementioned consultation paper by November 30.
Previously, the Finance Ministry reported that the combined assets under management (AUM) of the NPS and the APY have surpassed the Rs 16 lakh crore threshold.
The subscriber count for both flagship pension investment schemes has also exceeded 9 crores.
“This marks a significant milestone in India’s pension journey, as the subscriber base has expanded to over 9 crores,” the ministry noted.
The PFRDA has initiated key strategies to broaden pension inclusion and fortify the NPS.
Among these initiatives is the Multiple Scheme Framework (MSF), which provides additional investment options and was implemented on October 1.