Pension Fund Regulatory and Development Authority (PFRDA) chairman Supratim Bandyopadhyay has mentioned that the authority might finalize the funding plan through the tip of the present month, however its release might take a couple of extra months.
Bandyopadhyay informed PTI in an interview, “We have had two-three rounds of discussions with pension fund managers, EY team, members of our expert committee. We have resized the product slightly, the final size will be delivered by the end of September. The launch will take some time as it requires a lot of system changes. Actually it is a completely new scheme.
The objective of this investment plan is to give returns to the investors with minimum guarantee. However, the regulator is yet to decide on what this minimum guarantee will be.
Bandyopadhyay said, “We are keeping that option open. It can either be a fixed return of a certain percentage or it can be tied to a parameter in real time. For example, a one-year Treasury bill or some similar benchmark. So both the options are open.
PFRDA has given an average return of more than 10 per cent on investment in pension schemes over a period of 13 years.
Bandyopadhyay said the structure of the assured return investment plan would be largely ready by the end of September. He said that the authority will try to bring the scheme in the current financial year.
