“The Minimum Assured Return Scheme is under development. For now, we can start from September 30,” PFRDA chairman Supratim Bandyopadhyay told reporters in Bengaluru on Friday.
“Over a 13-year period, we have a compound annual growth rate of more than 10 percent… 10.27 percent to be exact. We’ve always given investors inflation-protected returns,” explains Bandhyopadhyay.
The PFRDA chairman said the size of the pension assets is Rs 35 lakh crore, of which 22 percent of a total of Rs 7.72 lakh crore is at the National Pension System (NPS), while the EPFO handles 40 percent of the funds.
Bandhyopadhyay said that subscriber enrollment has increased significantly over time from 3.41 lakh to 9.76 lakh this year. He predicted that subscriber enrollment would increase to 20 lakh in the current fiscal year.
He said the ease of onboarding through digital means such as using Aadhaar, DigiLocker, CKYC for KYC, OTP based authentication and paperless onboarding/service processes are among many other initiatives.
Furthermore, the maximum entry age has been raised to 70 years and the retirement age has been raised to 75 years. The NPS account would be “automatically continued” at age 60 or retirement age. The purchase of an annuity can be postponed until the age of 75 years.
The chairman of the regulator indicates that after five years of membership with the NPS, the subscriber can opt for early retirement and that the investment choice can be changed four times per financial year.