- Pension fund regulatory and Development Authority(PFRDA) is planning on a minimum assured return scheme (MARS) for the subscribers of its flagship social security programme,National Pension System(NPS).
- Currently, returns on the National Pension System (NPS) are linked to the returns of the underlying instruments such as equity, debt or a mix of both.And if the minimum assured return scheme(MARS) comes into play under the NPS, then subscribers will be assured of a minimum return over a specified period. And any lag in the return will be compensated by the sponsor of the scheme.
- National Pension System (NPS) is a government-sponsored pension scheme. It was launched in 2004 for government employees. However, in 2009, it was opened to all sections.It is regulated by PFRDA .
- Upon entry into the NPS, the subscriber normally remains invested till the age of superannuation or 60 years, while upon exit from the system, the subscriber is entitled to withdraw up to 60% of the accumulations and the remaining 40% is mandatorily required to purchase annuity from an annuity service provider who will provide monthly pension to the subscriber.
