Why is it in the news?
→ PFRDA constituted a high-level committee to design an assured payout framework under NPS.
→ Guidelines for NPS Vatsalya Scheme 2025 were also issued.
Category: Economy
Important Points
- 15-member committee chaired by MS Sahoo (former IBBI Chairperson).
- Mandate: design legally enforceable, market-based guaranteed payouts under NPS.
- Focus on lock-in periods, pricing, risk management norms, capital requirements, and tax aspects.
- NPS introduced on 1 Jan 2004; governed by PFRDA Act, 2013.
- Employees contribute 10% of basic + DA; the government contributes 14%.
- OPS liabilities rose from ₹3,272 crore (1990–91) to over ₹1.9 lakh crore (2020–21).
- NPS Vatsalya launched for minors below 18 years.
- Minimum contribution ₹250 per year; no upper limit.
- Partial withdrawal after 3 years up to 25% for education/medical needs.
- On attaining majority (18–21), option to shift to NPS Tier I or exit.
- Exit rule: minimum 20% corpus for annuity; full withdrawal allowed if corpus ≤₹8 lakh.