The Pension Fund Regulatory and Development Authority (PFRDA) has issued a comprehensive consultation paper aimed at making pension wealth accumulations more visible to subscribers while ensuring long-term financial stability and economic relevance.
Key Highlights
- PFRDA releases a draft framework to guide pension wealth accumulation and strengthen retirement savings in India.
- The framework aims to enhance transparency, governance, and long-term growth of pension funds for investors.
The consultation paper's title is 'Alignment of Valuation Guidelines with the core objectives of Long-only Funds when investing in Government Securities and calculation of Net Asset Value (NAV)'.
According to the PFRDA, the proposed framework is part of the organization's ongoing commitment to improving governance, protecting subscriber interests, and contributing to India's overall financial and infrastructure growth.
In order to align pension fund investments with long-term capital formation and increase stakeholder confidence by funding productive, long-gestation infrastructure assets, the October 17, 2025, Consultation Paper suggests adopting a dual valuation framework (accrual and fair market) for long-dated government securities held in NPS/APY.
Since short-term interest rate fluctuations do not significantly impact subscribers during the accumulation phase, it aims to minimize their impact on scheme NAV and show subscribers how to accumulate pension wealth in a stable and straightforward manner.
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All interested parties, including NPS participants, potential subscribers, pension funds, industry professionals, academics, and the general public, are being asked to provide input on the proposal, according to PFRDA.
According to the statement, stakeholders have until November 30, 2025, to provide their thoughts, suggestions, and feedback on the consultation paper.
