InvestorQ : Is it true that National Pension Scheme (NPS) subscribers will get some minimum assured returns?
divya Sing made post

Is it true that National Pension Scheme (NPS) subscribers will get some minimum assured returns?

Answer
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simran Kaur answered.
1 year ago


No.

While there have been expectations and sources saying the same is likely, there hasn’t been any official statement on minimum assured returns for National Pension Scheme (NPS) subscribers.

Sources say subscribers of NPS will soon get to decide the fund option that comes with a minimum assured return. As of now, the returns in NPS are linked to the performance of the underlying securities such as equity, debt or a mix of both.

The reason for the expectation that NPS subscribers will get minimum assured returns comes from the fact that the Pension Fund Regulatory and Development Authority (PFRDA) has invited an Expression of Interest from leading actuarial firms for designing and development of a Minimum Assured Return Scheme (MARS) for NPS subscribers.

These firms have been asked to design, develop and recommend a minimum assured return scheme that can be implemented under the NPS architecture.

Please note, however, that there is not confirmed by any official and is still work in progress.